CIO Today

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
Daily Briefing for Technology's Top Decision-Makers
Vblock™ Systems:
Advanced converged infrastructure
increases productivity & lowers costs.

www.vce.com
Wednesday, April 16th 
Real-time info services with Neustar
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Enterprise Software
Enterprise Hardware
Big Data
Network Security
Cloud Computing
CRM Systems
Data Storage
Operating Systems
Communications
CIO Issues
Mobile Tech
Chips & Processors
World Wide Web
Business Briefing
After Hours
Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Business Briefing

Microsoft Rises on Big Xbox Sales

Microsoft Rises on Big Xbox Sales
January 27, 2014 9:31AM

Bookmark and Share
A bigger-than-expected quarterly profit boosted Microsoft, with Xbox One console sales largely to thank and Surface tablets having a record quarter. Outgoing CEO Steve Ballmer called it a "great holiday." However, analysts continue to question the company's new focus on manufacturing hardware on top of its mainstay software business.

BMC is redefining the relationship between I.T. and business. Now I.T. can provide easy access to business services, support and applications -- anywhere, anytime, and from any device. Meaning a more efficient business and an even more innovative I.T. Learn more here.

Microsoft Corp. reported revenue and earnings for its fiscal second quarter that topped Wall Street expectations, as the company sold 3.9 million Xbox One consoles to retailers and doubled revenue from its line of Surface tablets from a quarter earlier.

Net income in the quarter through December climbed to $6.56 billion, or 78 cents per share, from $6.38 billion, or 76 cents per share, a year ago.

Revenue rose 14 percent to $24.52 billion.

Analysts polled by FactSet expected earnings of 68 cents per share on revenue of $23.67 billion.

Outgoing CEO Steve Ballmer, who announced he'd step down by August, said in a statement the Redmond, Washington-based company's devices and consumer segment had a "great holiday quarter." A new CEO is expected to be announced soon.

Surface revenue rose to $893 million in the quarter, up from $400 million in the three months through September, as the company benefited from a summertime price cut to its first-generation models, unveiled the Surface 2 and expanded the number of places it is sold at retail.

"There's better hardware, the software continues to improve and there's better market perception," said Chris Suh, Microsoft's general manager of investor relations, in an interview with The Associated Press. He added that there has been "good pick-up" of Surface 2. "The trajectory is a lot better than a couple of quarters ago."

However, analysts continue to question the company's new focus on manufacturing hardware on top of its mainstay software business. The Surface division continued to lose money as the company strived to reach manufacturing scale that would make it profitable. Meanwhile, Xbox One, which launched in November, is still in the money-losing phase typical of new consoles, though that should change in later years as it profits from game sales.

Making matters worse on the hardware front, Microsoft plans to complete its $7.4 billion acquisition of Nokia's phone business and patent rights early this year, but the Finnish phone maker reported earlier in the day that its smartphone sales plummeted 29 percent in the December quarter despite releasing new Lumia models.

"I would call it a Herculean challenge to turn around that mobile business," said Daniel Ives, senior technology analyst with FBR Capital Markets. "They have a lot of wood to chop ahead."

The company withstood a steep decline in personal computer sales, which research firm Gartner pegged at a 7 percent decline worldwide in the December quarter and IDC put at 6 percent.

Microsoft said revenue from its flagship operating system fell just 3 percent, reflecting a 12 percent gain from PCs that its partners sold to enterprises, although it made no distinction between which version sold better, Windows 7 or its much-criticized Windows 8.1. Some businesses are still upgrading to Windows 7 as the company plans to end support for Windows XP in April. Windows revenue from consumer purchases fell 20 percent, dragged down by a sharp decline in China.

Overall, revenue from its devices and consumer segment grew 13 percent to $11.91 billion, while revenue from commercial products like server operating systems and cloud computing services grew 10 percent to $12.67 billion.

Microsoft's shares rose $1.29, or 3.6 percent, to $37.34 in after-hours trading Thursday following the release of the results. Earlier, the stock closed the regular session up 13 cents at $36.06.

© 2014 under contract with NewsEdge. All rights reserved.

Tell Us What You Think
Comment:

Name:



 Business Briefing
1. Tech Stocks: From Giddy to Glum
2. Authors Guild Hits Back at Google
3. Bezos Talks Grocery Delivery, Drones
4. Parties Clash Over Internet Oversight
5. Salesforce To Dominate S.F. Skyline




 Most Popular Articles
1. BlackBerry Drops T-Mobile After Nasty Spat
2. Will Satya Nadella Launch an Office for iPad?
3. Google Unveils Android Wear for Smart Watches
4. Cisco, IBM Launch Internet of Things Consortium
5. IBM Applies Big Data Analytics To Fight Against Fraud


 Related Topics  Latest News & Special Reports

  Twitter Acquires Data Analyzer Gnip
  Google Proudly Scans Your Gmail
  VMware Rolls Out DR-as-a-Service
  Google Grabs Droid-Maker
  Red Hat Unveils OpenShift Marketplace

 Technology Marketplace

Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
BMC's I.T. solutions unleash the power of your business
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
Barium Ferrite (BaFe) is the future of tape.
 
Enterprise Hardware
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
Barium Ferrite (BaFe) is the future of tape.
 
Enterprise I.T.
BMC's I.T. solutions unleash the power of your business
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
Tips To Defeat the Heartbleed Bug
Heartbleed headlines continue as IT admins scramble for answers no one has. Early reports of stolen personal data, including 900 social insurance numbers in Canada, are starting to trickle in.
 
NSC Backs Disclosing Software Vulnerabilities
Disclosing vulnerabilities in commercial and open source software is in the national interest and shouldn't be withheld unless there is a clear need, says the National Security Council.
 
Heartbleed Flaw Affects Hardware, Too
It appears the Heartbleed security bug affects not just Web sites, but also the networking equipment that connects businesses and homes to the Net, including Cisco and Juniper's equipment.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Is Amazon Launching a 3D Smartphone?
Once known for selling books on an e-commerce platform, Amazon is now a bona fide hardware maker -- and it's reportedly rolling out an innovative smartphone with a 3D screen.
 
Review: S5 Features Useful, Less About Gimmicks
There's a lot to like about Samsung's new Galaxy S5 smartphone -- among them, its relative lack of features. Samsung chose to focus on features people might actually want, not gimmicks.
 
Analyst: Samsung Galaxy S5 Won't Sway iPhone Lovers
The Samsung Galaxy S5 hits store shelves on Friday and the reviews are starting to pour in. The question is: Can the latest in the Galaxy line grab more market share from Apple’s iPhone?
 

Navigation
CIO Today
Home/Top News | Enterprise Software | Enterprise Hardware | Big Data | Network Security | Cloud Computing | CRM Systems
Data Storage | Operating Systems | Communications | CIO Issues | Mobile Tech | Chips & Processors | World Wide Web
Business Briefing | After Hours | Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 CIO Today. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.