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E-mail ID will not be published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

  • The survey paints an optimistic future, but sees little scope for a bang

    The Economic Survey, which comes out a day before the Union budget, is widely regarded as its forerunner, an indicator of things to come 24 hours late

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

Urs Schoettli

The hidden attractions of Japan

We live in the Asian century. During the past two ...

Zehra Naqvi

Star power

Being a part of the generation that gorged on Shah ...

Bubbles Sabharwal

The waking moment decides the day

There was a little girl/ Who had a little curl/ ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture