Microsoft's Revenue and Profits Down for Third Quarter
Microsoft, like Intel, did not have the greatest third quarter in terms of finances, as both revenue and profits were down compared to the same time last year. Revenue dropped eight percent to $16.008 billion, with operating income down 26% to $5.308 billion. Some of the downfall is due to deferred revenue for when Windows 8 and Office 2013 ship, which is October 26 and the first part of next year, respectively. Microsoft's Windows and Windows Live Division saw revenue drop nine percent to $4.411 billion, with $1.167 billion of it deferred to Windows 8. Operating income was down 50% to $1.646 billion, again because of people waiting for W8. Most other Microsoft divisions saw a decrease in either revenue or profit, although the Server and Tools and Online Services Division each had a small increase.
Next quarter should be better for Microsoft, especially since all the deferred revenue for Windows 8 and Office 2013 will become available. Many people who need a new computer are no doubt waiting for W8 to arrive, so things should pick back up very soon.