Microsoft Announces Record Second Quarter Earnings

Microsoft (News - Alert) has continuously held the spot of being the world’s largest software company. Last year, the company launched into unparalleled success with the Windows 7 operating system, showing critics that customers are still willing to spend money on updated technology services.

Today, Microsoft announced an earning of $20 billion for its second quarter, representing a 5 percent increase from last quarter. Net income earned was $6.63 billion. Stock share prices rose to a record earnings per share amount of $0.77 per share, from $0.74 per share in the previous quarter. Peter Klein (News - Alert), Chief Financial Officer, stated he was “extremely pleased with the business and consumer response to Microsoft products” this quarter.

 These quarter results rely heavily on Christmas sales related to Microsoft’s newest interactive gaming application the Kinect. Klein said, “Kinect exceeded expectations and is the fastest selling gaming device in history. I couldn’t be more proud of our team and the way we are fundamentally changing how people interact with gaming software.”

The Kinect sensor was introduced this quarter already selling more than 8 million units. Windows Phone (News - Alert) 7 has sold more than 2 million licenses and continues to have high customer satisfaction.

Business sales are increasing too, as Klein stated, “more than 90 percent of enterprise businesses are already using Windows 7.” Windows announced through a press release that is has now sold over 300 million Windows 7 licenses, and Windows 7 is now running on over 20 percent of Internet-connected PCs.

“Business demand for our productivity and infrastructure products and cloud solutions is strong. Office had a huge quarter, exceeding everyone’s expectations, and our roadmap for cloud productivity with Office 365 makes products like SharePoint, Exchange, Lync and Dynamics CRM even more attractive to our customers,” said Kevin Turner, chief operating officer at Microsoft, in a release. “Windows 7 continues to be the fastest-growing operating system in history, and our recent System on a Chip announcement demonstrates our commitment.

Bill Koefoed, general manager of investor relations said this was a very strong quarter and Microsoft remains confident about its business outlook using Windows 7 and Microsoft Office 2010, both of which have increased sales.

Microsoft’s operating revenues rose to an astounding 7 billion, a 1 percent increase.

Want to learn more about the latest in communications technology? Then be sure to attend ITEXPO East 2011, taking place Feb 2-4, 2011, in Miami. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.