Microsoft announced on Thursday, a record fourth-quarter revenue of $17.37 billion for the quarter ended June 30, 2011.
Analysts were expecting Microsoft to post earnings of 58 cents per share however the software giant shot past the estimates to report earnings of 69 cents per share, an impressive increase of 35% from last year. “Throughout fiscal 2011, we delivered to market a strong lineup of products and services which translated into double-digit revenue growth, and operating margin expansion,” said Peter Klein, chief financial officer at Microsoft. “Our platform and cloud investments position us for long-term growth.”
Microsoft managed to secure $5.87 billion net income in Q4, 2011. Microsoft’s earnings come just two days after a blockbuster report from rival Apple. Apple announced on Tuesday net income of $7.31 billion, double its earnings from Q3 2010. Apple’s revenue rose to $28.6 billion for the quarter, up 82% from the previous year. Apple announced strong iPhone and iPad sales, 20.3 and 9.25 million respectively. The figures impressed analysts and investors, the company’s stock price soared to $400 per share in after hours trading on the NASDAQ on Tuesday evening.
Microsoft’s revenue is heavily invested in both Windows and Office suites which are fuelled by the PC market. Stiff competition from Apple’s iPad and a large number of new Android Tablets has seen the PC market slow recently. Despite this, Microsoft has sold over 400 million licences of Windows 7 and 100 million licences for its Office 2010 product.
Microsoft’s Entertainment & Devices Division revenue grew by a massive 30% in the fourth quarter, 45% over the year. The software giant pinned the growth squarely on the company’s Xbox and Kinect products. “A strong year of double-digit increases in revenue and earnings is a real credit to all of our Microsoft employees and partners around the world. We continue to see strong business demand across all of our products, from small businesses all the way up to the largest global enterprises,” said Kevin Turner, chief operating officer at Microsoft. “Our move to cloud services continues with the release and momentum of Office 365 and growth in Windows Azure. We’re providing our customers seamless and powerful ways to move to the cloud, and we are well positioned for the coming year.”
Microsoft is currently trading up over 2% in after-hours NASDAQ trading. Microsoft is due to hold an earnings call at 17:30 EDT, WinRumors will update this story with any items of interest.