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Vista coupon program to have a $1.5 billion impact on Microsoft
Wednesday, November 1st, 2006
Microsoft today announced another solid quarter that pushed revenues beyond $10 billion and 
profits in the range of $3.5 billion. During the quarter, Microsoft made substantial investments to launch upcoming products such as Zune and Vista and, surprisingly, also encountered rising unit costs of its Xbox 360 console, which sold six million times to date.
The fiscal Q1 2007 earnings result was at the high end of Microsoft’s and analyst’s expectations and represented an 11% year-over-year increase in earnings, now at $10.81 billion, and net profits of $3.48 billion.
The Business division, which is responsible for products such as Office, Exchange, Project and Visio, remains the main revenue contributor with sales of $3.4 billion (up from 3.3 billion in fiscal Q1 2006), followed by the Client division, which made $3.3 billion (up from $3.1 billion), mainly from the Windows operating system. Online services revenues decreased from $565 million to $539 million. The strongest growth was seen in ‘Server and Tools’, which jumped 17% from about $2.1 billion to $2.5 billion and the firm’s Entertainment Devices division, which saw revenues increase from $596 million to $1.0 billion during the quarter. Vista coupon program to have a $1.5 billion impact on Microsoft | TG Daily
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