Microsoft Survives Justice Department Trial In Quarterly Earnings - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Microsoft Survives Justice Department Trial In Quarterly Earnings

Though the U.S. Department of Justice had only a lump of coal for Microsoft at Christmas, Santa still brought the company a huge present. Microsoft yesterday announced record revenue and income in its second fiscal quarter, which ended Dec. 31. The software developer recorded revenue of $4.94 billion, up from $3.59 billion in the year-ago quarter, and income of $1.98 billion, nearly double the $1.13 billion for the same period last year.

Earnings rose 74% to 73 cents per diluted share, a dramatic rise from the 42 cents per share reported this time last year. Revenue increased by almost a billion dollars from the company's first fiscal quarter, which ended Sept. 30.

The company credited strong growth in PC sales in the so-called Christmas quarter for propelling sales of products such as Windows NT Server 4.0 and NT Workstation 4.0. For example, Microsoft sold more than 3 million new copies of NT Workstation during the quarter, bringing the total installed base to around 25 million.

Additionally, the Exchange Server messaging engine did well, with 4.5 million new clients sold during the quarter.

Still, Microsoft CFO Greg Maffei cautioned that tough times may well lie ahead. Given the looming year 2000 problem, IT departments may lock down budgets for new purchases, which may particularly affect sales of Office 2000, due out in April, as well as Windows 2000, due to ship sometime during the second half of this year.

If the company's growth continues strong, Microsoft may be able to break $20 billion in revenue by the end of its fiscal year, on June 30. But Maffei instead predicts revenue may be off this quarter by about $300 million over the Christmas quarter.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Commentary
2021 Outlook: Tackling Cloud Transformation Choices
Joao-Pierre S. Ruth, Senior Writer,  1/4/2021
News
Enterprise IT Leaders Face Two Paths to AI
Jessica Davis, Senior Editor, Enterprise Apps,  12/23/2020
Slideshows
10 IT Trends to Watch for in 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/22/2020
Register for InformationWeek Newsletters
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll