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Microsoft posts profit gain despite drop in Windows OEM revenue

updated 05:34 pm EDT, Thu October 24, 2013

Positive financials driven by enterprise sales

Microsoft has posted its fiscal first-quarter financials, reaching a record revenue of $18.53 billion with a net profit of $5.24 billion. The company credits enterprise sales and improving consumer demand with helping to drive growth, however the disclosures point to a seven-percent slide in Windows OEM revenue.

"Our new commercial services will help us continue to outgrow the enterprise market, and we are seeing lots of consumer excitement for Xbox One, Surface 2 and Surface Pro 2, and the full spectrum of Windows 8.1 and Windows Phone devices," said chief executive Steve Ballmer.

The company highlights $400 million in revenue from its Surface hardware, with a growth in unit shipments and revenue compared to the prior quarter. The report follows an SEC filing from the summer, which suggested the company had yet to make a profit from its Surface products by the end of July.

Enterprise divisions showed the biggest surge, with a doubling of commercial cloud revenue and double-digit gains for the company's SQL Server, Lync, SharePoint and Exchange products.

Microsoft is expected to announce its fiscal Q2 forecast during a financial conference call this evening.

by MacNN Staff



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