Microsoft’s earnings are out, and it’s largely good news.We’re reading it over now, but here are the two highlights:
- Revenue just missed at $18.1 billion, versus estimates of $18.2 billion.
- Non-GAAP EPS is $0.67 versus estimate of $0.62.
The stock is ticking up ever so slightly in the after hour market.
The company did however book a loss thanks to the $6.2 billion write down from aQuantive. This is the first ever quarterly loss for Microsoft.
Microsoft has $540 million in deferred revenue thanks to the Windows upgrade, which a little better than what the street was expecting.
We were on the phone with Microsoft IR boss Bill Koefoed. Here’s some of the stuff he thought was great:
- Operating Expenses were flat year over year. That’s not something we’ve always been great at.
- 12% increasing in operating income.
- Server and Tools up 13% — SQL server up over 20% and its going head to head with Oracle.
- Another part of Server and Tools, System centre was up 20%, we feel like we took share from VMWare.
- One other data point — Lync product had 45% growth. Skype driving growth in enterprise space.
- As for the loss in online, Microsoft considers search a strategic asset. It can lose some money because the technology has long term value.
Here’s a breakout of each division: