Xbox, Surface drive Microsoft's Q2 revenues

Tags: Xbox, News
Buoyed by strong growth in gaming console Xbox, technology giant Microsoft saw revenues from the Devices & Consumer (D&C) hardware segment rising 68 per cent to $ 4.73 billion during the October-December quarter.

Microsoft, which follows July-June as fiscal year, saw its total revenues grow 14 per cent to $ 24.52 billion in Q2 2013, from $ 21.46 billion in the same period last fiscal.

Net income was up 3.47 per cent at $ 6.56 billion from $ 6.34 billion during the reported quarter.

"The investments we are making in devices and services that deliver high-value experiences to our customers, and the work we are doing with our partners, are driving strong results and positioning us well for long-term growth," Microsoft CEO Steve Ballmer said.

Sales of its gaming console XBox stood at 7.4 million units, while Surface (tablet) revenue more than doubled sequentially from $ 400 million in Q1 2013 to $ 893 million in the second quarter on higher sales of Surface 2 and Surface Pro 2.

Both the devices are accounted under the D&C hardware category.

The US-based firm, which reports revenue segments under D&C, commercial and corporate & others, saw overall D&C revenues grow by 13 per cent at $ 11.91 billion.

Microsoft, in a bid to expand its D&C portfolio, acquired Finnish handset major Nokia for $ 7.2 billion in September last year. The process is expected to be completed in January-March quarter this year.

The firm is also in the process of making a shift towards smart handheld devices like smartphones and tablets.

Revenues from commercial segment grew 10 per cent to $ 12.67 billion. The company, which is synonymous with the Windows Operating System, includes Microsoft Office for business, Exchange, SharePoint and Lync in the Commercial Licensing segment.

"Our Commercial segment continues to outpace the overall market and our Devices and Consumer segment had a great holiday quarter," Ballmer said.

The company's cash and cash equivalents stood at $ 10.06 billion at the end of the reported quarter.

Microsoft CFO Amy Hood said: "We delivered record revenue as demand for our business offerings remains high and we made strong progress in our Devices and Consumer segment."

These results reflect Microsoft's focus on execution, cost discipline and long-term shareholder value as it continues to drive the strategic transformation of the company, she added.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi must issue strict guidelines on research reports and stock tips by brokers

    After prescribing a corporate governance code for companies, capital market regulator, Securities and Exchange Board of India (Sebi) is drafting prude

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

When too little could mean too late

The calamity in Jammu and Kashmir has once again shown ...

Kuruvilla Pandikattu SJ

Genuine spirituality means true humanity

Every religion promises salvation to its followers. Rarely do we ...

Gautam Gupta

Moral policing is the need of the hour

Recently, when Deepika Padukone raised her voice against an objectionable ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture