Support NeoGAF

thorns · Apr 28, 2005

SEATTLE, April 28 (Reuters) - Microsoft Corp. (MSFT.O: Quote, Profile, Research) posted a higher quarterly profit and sales on better-than-expected demand for personal computers as well as strong sales of its server software and Xbox game consoles, the world's largest software maker said on Thursday.

Microsoft, based in Redmond, Washington, reported a net profit of $2.56 billion, or 23 cents a share, for its fiscal third quarter ended March 31, compared with $1.32 billion, or 12 cents a share, a year earlier.

Revenue rose to $9.6 billion from $9.18 billion.

Code:

Microsoft Corporation
  Segment Revenue and Operating Income / (Loss)
  (In millions)

                                        Three Months Ended   Nine Months Ended
    Revenue                                  March 31             March 31
                                          2004      2005       2004     2005
    Segments
    Client                               $2,923    $2,986     $8,791   $9,200
    Server and Tools                      2,191     2,445      6,217    7,203
    Information Worker                    2,700     2,767      7,816    8,104
    Microsoft Business Solutions            179       185        536      556
    MSN                                     591       564      1,628    1,692
    Mobile and Embedded Devices              61        80        177      240
    Home and Entertainment                  530       593      2,378    2,632
     Total revenue                       $9,175    $9,620    $27,543  $29,627


                                        Three Months Ended   Nine Months Ended
    Operating Income / (Loss)                March 31             March 31
                                          2004      2005       2004      2005
    Segments
    Client                               $2,274    $2,339     $6,624   $7,265
    Server and Tools                        616       824        810    2,459
    Information Worker                    1,954     2,001      5,388    5,918
    Microsoft Business Solutions            (52)      (54)      (245)    (125)
    MSN                                     101       100         58      301
    Mobile and Embedded Devices             (36)       (8)      (180)     (32)
    Home and Entertainment                 (209)     (154)      (878)    (211)
    Other                                (3,370)   (1,719)    (5,676)  (4,003)
     Total operating income / (loss)     $1,278    $3,329     $5,901  $11,572

bitwise · Apr 28, 2005

sonycowboy · Apr 28, 2005

So, they lost $154M in the H&E division. They've seriously trimmed thier losses this fiscal year vs previous years. Just looking at the Nine months vs Nine months last year, they've cut losses by 400%.

They also stated that console unit sell-in was up 40% (assuming Q3 2005 vs Q3 2004)

radioheadrule83 · Apr 28, 2005

Not that it matters, but these things always confuse me...

Given that parenthesis are representing negative numbers, what's going on here? Home / Entertainment is positive in the top data and negative in the lower. Revenue Vs actual operating income / loss?

Is MSN referring to the ISP or all MSN brand stuff?

sonycowboy · Apr 28, 2005

radioheadrule83 said:
Not that it matters, but these things always confuse me...

Given that parenthesis are representing negative numbers, what's going on here? Home / Entertainment is positive in the top data and negative in the lower. Is MSN referring to the ISP or all MSN brand stuff?

The top columns are REVENUE and the bottom columns are NET INCOME.

radioheadrule83 · Apr 28, 2005

cheers.. sussed it out in the end. Hit reply in haste

Thanks!

thorns · Apr 28, 2005

Their revenue growth is kind of slowing down though. They really need stronger revenue growth, and I'm thinking xbox is a big part of that strategy. Not that they're doing poorly by any means, but xbox could be a big growth driver for msft. They already have 2,6 bln yearly sales now, they're probably aiming to double that..

Prine · Apr 28, 2005

Great news thanks. Hope this means they continue to pour thier money into Xbox 360 and future Xbox consoles.

sol5377 · Apr 28, 2005

thorns said:
Their revenue growth is kind of slowing down though. They really need stronger revenue growth, and I'm thinking xbox is a big part of that strategy. Not that they're doing poorly by any means, but xbox could be a big growth driver for msft. They already have 2,6 bln yearly sales now, they're probably aiming to double that..

Their revenue growth was slight, but their profit margins seemed to have nearly doubled! Those are unbelievable margins that they work with... I guess that's what happens when you've got a virtual monopoly in any market

In contract, Sony's margins are much more razor thin (as a company).

sonycowboy · Apr 28, 2005

Not much info on the Xbox business though. Hopefully the conference call @ 5:30PM (EST), Robbie will give some info on shipment numbers.

tsp_gatmog · Apr 28, 2005

where can i listen in on the conference?

sonycowboy · Apr 28, 2005

tsp_gatmog said:
where can i listen in on the conference?

http://www.microsoft.com/msft/earn.mspx

Joe · Apr 28, 2005

i doubt there's any way to listen to this conference call?

edit: sweet

sonycowboy · Apr 28, 2005

Joe said:
i doubt there's any way to listen to this conference call?

Yes you can.

tsp_gatmog · Apr 28, 2005

thanks, partner.

BuzzJive · Apr 28, 2005

sonycowboy said:
They've seriously trimmed thier losses this fiscal year vs previous years. Just looking at the Nine months vs Nine months last year, they've cut losses by 400%.

400% sounds nice - but keep in mind - that's ALL Halo 2. If they could release a 6 million seller every quarter, they'd be doing pretty good

thorns · Apr 28, 2005

BuzzJive said:
400% sounds nice - but keep in mind - that's ALL Halo 2. If they could release a 6 million seller every quarter, they'd be doing pretty good

so you're saying that they made $650 million profit from halo 2?

sonycowboy · Apr 28, 2005

thorns said:
so you're saying that they made $650 million profit from halo 2?

Well, over $350 million is directly attributable to Halo 2, so yeah. Also, don't forget that the H&E division is ALOT more than just the Xbox.

Shaheed79 · Apr 28, 2005

It's pretty obvious that if MS turned more positive numbersearlier on they might of held on to the Xbox a little longer. I guess profit margins do dictate lifespan of a console moreso than the need for a graphical upgrade.

thorns · Apr 28, 2005

sonycowboy said:
Well, over $350 million is directly attributable to Halo 2, so yeah. Also, don't forget that the H&E division is ALOT more than just the Xbox.

$350,000,000 isn't that the revenue? not the profit..

Joe · Apr 28, 2005

no robbie bach?

MightyHedgehog · Apr 28, 2005

Well, they confirm that XBOX 1 hardware production has been increased to offset the lack of product in the channels. Not really news, but squashes all the screaming from people that MS has already started squeezing down XBOX 1 production.

BuzzJive · Apr 28, 2005

thorns said:
so you're saying that they made $650 million profit from halo 2?

I'd say a large portion of the profit is related to all things Halo 2. Halo 2 merchandise - Xbox Live subscriptions - etc. "ALL" was definitely an exaggeration, but I'd say that's the biggest difference in the 9 months chunks being compared.

Hitler Stole My Potato · Apr 28, 2005

MightyHedgehog said:
Well, they confirm that XBOX 1 hardware production has been increased to offset the lack of product in the channels.

Roland Hood · Apr 28, 2005

I'll wait for Gamespot for the real lowdown.

MightyHedgehog · Apr 28, 2005

Pretty run of the mill CC. No information or figures regarding next-gen XBOX...looks like that will all be spilt in the July CC.

DCharlie · Apr 28, 2005

"I'll wait for Gamespot for the real lowdown."

i have it here! :

"On top of Microsofts massive losses, BUY A PSP! BUY A PSP! BUY A PSP!"

Ghost · Apr 28, 2005

What happens if you take out Halo 2 from the nine month numbers?

mj1108 · Apr 29, 2005

DCharlie said:
"I'll wait for Gamespot for the real lowdown."

i have it here! :

"On top of Microsofts massive losses, BUY A PSP! BUY A PSP! BUY A PSP!"

You're dead on. :lol :lol

sonycowboy · Apr 29, 2005

thorns said:
$350,000,000 isn't that the revenue? not the profit..

:lol

Are you serious?

First parties revenue goes directly to the bottom line as there's no one else to pay. Although, I made an error using the MSRP, not the charge which Microsoft got from retailers, which was like $38-$40 for the regular edition, $45 or so for the limited edition. Also, the currency conversion from Europe made them a ton of money.

So, I'd say that it's probably more like $275M for Halo 2. Although, as others have said, tie-ins with the Halo accessories and Live accounted for a nice little chunk as well.

GhaleonEB · Apr 29, 2005

Ghost said:
What happens if you take out Halo 2 from the nine month numbers?

They become smaller?

909er · Apr 29, 2005

Ghost said:
What happens if you take out Halo 2 from the nine month numbers?

The same thing that happens when you take Mario games out of Nintendo's nine month numbers.

thorns · Apr 29, 2005

sonycowboy said:
:lol

Are you serious?

First parties revenue goes directly to the bottom line as there's no one else to pay. Although, I made an error using the MSRP, not the charge which Microsoft got from retailers, which was like $38-$40 for the regular edition, $45 or so for the limited edition. Also, the currency conversion from Europe made them a ton of money.

are the margins that high? I would think the retailers would get a bigger cut than just $10. No wonder nintendo makes a ton of money sellings its own software then. :lol my mistake..

Support NeoGAF

Microsoft profit rises on software, Xbox sales

Banned

Banned

Member

Banned

Member

Banned

Banned

Banned

Member

Member

Member

Member

Member

Member

Member

Member

Banned

Member

dabbled in the jelly

Banned

Member

Member

Member

Banned

Member

Member

And even i am moderately surprised

Chili Con Carnage!

Member

Member

Member

Member

Banned

Similar threads