Microsoft Reports Record 2Q Revenue of $21.5B

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It looks like Microsoft showed up all the naysayers with record 2Q revenue of over $21.5 billion.

Microsoft Corp. today announced quarterly revenue of $21.46 billion for the quarter ended December 31, 2012. Operating income, net income, and diluted earnings per share for the quarter were $7.77 billion, $6.38 billion, and $0.76 per share. These financial results reflect the net deferral of revenue for the Windows Upgrade Offer, Office Upgrade Offer and Pre-sales, and the Entertainment and Devices Division Video Game Deferral, partially offset by the recognition of previously deferred revenue for Windows 8 Pre-sales. The following table reconciles these financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. We have provided this non-GAAP financial information to aid investors in better understanding the company’s performance.
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Just as an FYI, revenue is pretty meaningless. If I sold $10 billion worth of stuff at cost, I'd still have $10 billion in revenue even though I probably lost my shirt. Earnings (or net profit) is, if you're going to report just one number, the number you want to use.
 
STR said:
Just as an FYI, revenue is pretty meaningless.
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Even record revenue... for a company which primarily makes its revenues from software?

The general statement is something worth considering, then realizing how little it applies here. ;)
 
Microsoft reaffirms fiscal year 2013 operating expense guidance of $30.3 billion to $30.9 billion.
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Look at it this way, then. Microsoft is roughly bringing in $15.1 billion per quarter. It expects costs for FY 2013 to be $30.3 billion. This leaves $30.1 billion in profit minus some extraneous expenses that might've occurred. They're doing pretty well, I'd say.
 
There's no doubt Microsoft enjoys the unique ability to coast on license renewals, MS Office, enterprise license agreement refreshes (such as the $620 mil ELA refresh with the DOD that MS tried to spin as a 620-mil purchase of Win8 licenses).

Where shareholders have a legitimate concern however is their ability to just do that forever -- gotta add wood to the fire at some point. And Microsoft's silence on Surface/RT/Window 8 today was particularly deafening. As well, they apparently continue to bleed money just to be able to say they have a horse in the fundamentally profitless console race.
 
Eh, enterprise license renewals tend to include server software, however.. gaming division? are you talking about Entertainment and Devices Division? i'm not sure 'hugely profitable' applies if you understand the data.
 
I'm really surprised no one mentions cooking the books here. When you know that a company is not doing well with their mainstream product and they post record sales, it's time for an outside audit or did no one learn anything from 2008?:confused:
 
Didn't take long for the nay sayers to popup and try to put this into a negative light. 1 post. That might be a new record. But now I shall take a look at their stock info and maybe peek into their balance sheets. It would be interesting to see if it suffered the same fate AAPL is experiencing right now.
 
STR said:
Just as an FYI, revenue is pretty meaningless. If I sold $10 billion worth of stuff at cost, I'd still have $10 billion in revenue even though I probably lost my shirt. Earnings (or net profit) is, if you're going to report just one number, the number you want to use.
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Revenue is anything *but* "meaningless"...;) Revenue tells investors how much business and business demand a company has for its products over a given quarter. It is in fact a very meaningful number.

Some of these posts are amusing in their sour-grapes attitude about Microsoft making money. Yep, it's true: Microsoft is not fading away. Lol....;) Only those whose vision is impaired by the RDF might ever have thought so--always amusing to read those posts.
 
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