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Microsoft Reports Second Quarter Results

P

Parmenides

Banned
Microsoft's fiscal year starts on July 1st


- Microsoft Corp. today announced second-quarter revenue of $19.95 billion for the quarter ended Dec. 31, 2010.

- Operating income, net income and diluted earnings per share for the quarter were $8.17 billion, $6.63 billion and $0.77 per share.

- Microsoft reported 55% growth in revenue for the Entertainment & Devices Division, as the success of the Kinect sensor boosted sales of Xbox 360 consoles, Xbox Live subscriptions and Xbox games.

- Entertainment and Devices Division posted operating income of $679 million

- Microsoft sold 8 million units of Kinect sensors in just 60 days

- Xbox 360 console units up 21%

- Xbox Live memberships grew 30%



Xbox 360 Worldwide Hardware Unit Sales (Unit:Million)
Code: 
Hardware Sales   Jl-Sp    Oc-Dc    Ja-Mr    Ap-Jn     FY       LTD

FY 2005/06        -        1.5      1.7      1.8      5.0      5.0

FY 2006/07        1.0      4.4      0.5      0.7      6.6      11.6    

FY 2007/08        1.8      4.3      1.3      1.3      8.7      20.3    

FY 2008/09        2.2      6.0      1.7      1.2      11.2     31.5     

FY 2009/10        2.1      5.2      1.5      1.5      10.3     41.8

FY 2010/11        2.8      6.3         -        -     9.1      50.9

Microsoft Q2
 
S

szaromir

Banned
From the other thread:
$679M operating income ($365M last year), $3,698M in revenues ($2,381M last year). Incredible growth, but I sorta expected more 360s shipped.
 
F

FrankT

Member
Not sure why Venturebeat is reporting 6.3, but regardless great quarter for the Division and some forward looking statements;

The largest spike in growth are in Microsoft’s entertainment and business divisions. The entertainment division, which handles the XBox 360, grew 55 percent and brought in $3.7 billion. A big chunk of that came from sales of Microsoft’s newest motion controller for the XBox 360, the Kinect, that lets players control games with their entire bodies. Income off its entertainment division almost doubled, growing from $370 million in the second quarter in 2009 to $680 million in 2010.

Microsoft sold 6.3 million XBox 360 consoles during the holiday season, and 8 millon Kinect controllers in the first 60 days after launch. Memberships of its premium XBox Live online service grew 30 percent in the second quarter of its 2011 fiscal year, according to the company. Microsoft is expecting 50 percent growth in its entertainment division in the third quarter, and 40 percent overall for its 2011 fiscal year.
Click to expand...

http://venturebeat.com/2011/01/27/microsoft-earnings-q2-2011/

Top and bottom line is way up for the year and division is left with just under a billion left on the books in the red since the 360 launched iirc.
 
E

Elios83

Member
6.3m Xbox360 in the quarter and 50.8m LTD.
1 billion operating profit for the 2012 calendar year.
Nice results, Matrick has definetly achieved the goal to turn the Xbox360 business to a nice profitability.
Still their 360 shipments are a missed opportunity, probably they could have sold more if they planned their supply and SKUs allocation better.
 
M

Majine

Banned
Great year for Microsoft, but this year... I wonder...

Few exclusives, and new consoles from the competition.
 
S

szaromir

Banned
Opiate said:
~$679 million earnings in a single quarter. Fantastic results.
Click to expand...
Now the division is -$995M since the 360 launched, they should be in black by the end of this CY, for those who care about this stuff.
 
M

Majine

Banned
Phantast2k said:
Oh yeah? Also adjusted for inflation? :eek:
Click to expand...

N o w t h e d i v i s i o n i s - $ 9 9 5 M s i n c e t h e 3 6 0 l a u n c h e d , t h e y s h o u l d b e i n b l a c k b y t h e e n d o f t h i s C Y , f o r t h o s e w h o c a r e a b o u t t h i s s t u f f .

Happy? :p
 
Z

Zzoram

Member
The big $$$ number to note is the 30% growth in Gold subscriptions. Gold keeps on powering, growing every year and providing MSFT with a huge source of revenue that Sony and Nintendo must be very envious of.
 
P

Psychotext

Member
Meaty amount of profit right there, $1m short of what they made over the entire of last year (Entertainment & Devices Division).

Edit - Actually... scratch that, it's pretty much exactly what they made over the entire of last year.
 
B

Beer Monkey

Member
Jesus, just a few months ago we had people arguing that Microsoft shareholders would probably push them to leave the console gaming business. :D

Wonder how Entertainment and Devices would be doing without the Zune, which I suspect loses money.
 
R

Retrocide

Member
Beer Monkey said:
Jesus, just a few months ago we had people arguing that Microsoft shareholders would probably push them to leave the console gaming business. :D

Wonder how Entertainment and Devices would be doing without the Zune, which I suspect loses money.
Click to expand...

Not to mention last years failure of the Kin and slow adoption rate of Windows Phone 7...
 
F

FrankT

Member
DarkMehm said:
That 679 million is still not Net Profit though so don't mix figures.
Click to expand...

Top line is 3.7B in revenue and the bottom is $679M in operating income. Not sure what there is to be confused about that.

Anyhow, bottom line is already at over a $1 billion for the fiscal year ($1,067M) so this should certainly be by far and away their best year with those forward looking statements included. They totally turned the division around and then some.
 
K

Karma

Banned
szaromir said:
Now the division is -$995M since the 360 launched, they should be in black by the end of this CY, for those who care about this stuff.
Click to expand...

You have the Quarterly numbers handy? Like to see them all listed.

The Entertainment and Devices Division is roughly 18 percent of the company's revenue and 8 percent of its profits. Good to see they are becoming more diversified.
 
S

szaromir

Banned
Retrocide said:
Not to mention last years failure of the Kin and slow adoption rate of Windows Phone 7...
Click to expand...
Yeah, WP7 should currently be the most important product for Microsoft and I wouldn't be surprised if Mattrick's (or even Ballmer's) head won't roll soon if things don't accelerate.

edit:
You have the Quarterly numbers handy? Like to see them all listed.
Click to expand...
I have them in Excel, but it'd take to much time to format it here, anyway, I'll just copy it here, the first quarter is FY2006Q2 (in $ M):

-286
-402
-423
-96
-289
-315
-1199
167
375
106
-171
178
151
-31
-130
312
375
165
-161
382
679
 
B

bigtroyjon

Member
Man, spilling the beans on the 8 million kinects at CES really took most of the interest out of this report.

Next quarter will prove to be interesting as we find out about kinect's sustained sales and how supply constrained they actually were in december.
 
F

FrankT

Member
szaromir said:
Yeah, WP7 should currently be the most important product for Microsoft and I wouldn't be surprised if Mattrick's (or even Ballmer's) head won't roll soon if things don't accelerate.

edit:

I have them in Excel, but it'd take to much time to format it here, anyway, I'll just copy it here, the first quarter is FY2006Q2 (in $ M):

-286
-402
-423
-96
-289
-315
-1199
167
375
106
-171
178
151
-31
-130
312
375
165
-161
679
Click to expand...

Last quarter was $382M, post 3;

http://www.neogaf.com/forum/showthread.php?t=411501

Technically somewhere that would be off too if they are at $1,067M so far for the first two quarters for the fiscal year. By 6M if my math is correct.
 
P

Psychotext

Member
bigtroyjon said:
Next quarter will prove to be interesting as we find out about kinect's sustained sales and how supply constrained they actually were in december.
Click to expand...
Assuming similar sales related seasonal adjustments to the 360, I'd be surprised to see Kinect doing any more than 2m for the next quarter.
 
B

bigtroyjon

Member
listening to conference call and they said that there are 30 million xbox live subscribers.

edit- they expect that xbox revenues will be up 50 percent next quarter.
 
D

DarkMehm

Member
Jtyettis said:
Top line is 3.7B in revenue and the bottom is $679M in operating income. Not sure what there is to be confused about that.

Anyhow, bottom line is already at over a $1 billion for the fiscal year ($1,067M) so this should certainly be by far and away their best year with those forward looking statements included. They totally turned the division around and then some.
Click to expand...

Operating income are the earnings before taxes and therefore the middle line. Nintendo always lists all three of them, but I'm not sure how Sony handles that.
 
F

FrankT

Member
bigtroyjon said:
listening to conference call and they said that there are 30 million xbox live subscribers.
Click to expand...

They announced that with the Kinect 8M as well. Maintaining the ~50% rate they should be at 15M paid subs. If they hit 20M in the next year at an average of $50 it would push that part of the business to $1B a year.

Edit: Also I think we can safely put the whole $500M marketing campaign for Kinect talk behind us now aye.
 
S

szaromir

Banned
Jtyettis said:
Last quarter was $382M, post 3;

http://www.neogaf.com/forum/showthread.php?t=411501

Technically somewhere that would be off too if they are at $1,067M so far for the first two quarters for the fiscal year. By 6M if my math is correct.
Click to expand...
Sorry, I didn't notice I hadn't updated the sheet in October. So they are -$613M now. Also when I was collecting the numbers I noticed that they often have their numbers adjusted a quarter/a year later, but not by much usually.
 
S

starsky

Member
Very nice growth for the entire division. Hopefully this means they will pour more investment into technology and games.
 
B

bigtroyjon

Member
I think we now know why there were console shortages, the CFO talked about managing the Kinect launch so that they not only had a great launch but continued to grow profits in the division. Sounds like they didn't want to deal with the risk of making a bunch of consoles that didn't end up getting shipped out and having the quarters profits slashed.
 
U

user_nat

THE WORDS! They'll drift away without the _!
Wonder how much of a lose the division has taken on the WP7 launch. If any.

Will be interesting to see if they can keep the growth going for this calendar year.
 
F

FrankT

Member
bigtroyjon said:
I think we now know why there were console shortages, the CFO talked about managing the Kinect launch so that they not only had a great launch but continued to grow profits in the division. Sounds like they didn't want to deal with the risk of making a bunch of consoles that didn't end up getting shipped out and having the quarters profits slashed.
Click to expand...

That's interesting as they were marking this as the relaunch and going off their best quarter at 6 surely they thought they would hit that, but clearly not. Even with them pulling shipments from Jan/Feb as they already stated they really did fumble in this regard. Quarter could have easily been 500k-1M larger.

Still with the growth they are citing for the year they should hit 13-14M for their fiscal year if they get their supply/shipments worked out.
 
S

szaromir

Banned
From profitability standpoint MS is where Nintendo was in 2006 with Wii launch - basically a 5 years old console with a cheap add-on sold for the same price as back in 2005. No wonder they already hit $1B in operating income this year and still 2 quarters to go.
 
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