Microsoft has reported total revenue of $19.90 billion for the quarter ended June 30, 2013, up 10% from $18.06 billion revenues in the same quarter last year. 

The company reported an operating income of $6.07 billion for the quarter, compared to $192 million operating income in Q4-FY12. Note that in Q4 2012, the company had written off non-cash, non-tax-deductible income statement charge of $6.2 billion for the impairment of goodwill related to the acquisition of aQuantive, a digital advertising company, in 2007, and the deferral of $540 million of revenue related to the Windows Upgrade Offer. It reported a net income of $4.96 billion for the quarter.

Microsoft noted that these revenues include a $900 million charge, or a $0.07 per share impact, related to Surface RT inventory adjustments. It also notes that the financial results reflect the recognition of $782 million of previously deferred revenue related to the Office Upgrade Offer.

For the year ending in June 30, 2013, Microsoft reported revenue of $77.85 billion, up from $73.72 billion it had reported in FY12. Operating income for FY13 was at $26.76 billion, up from $21.76 billion it had reported in FY12, while net income for FY13 was at $21.86 billion, up from $16.97 it had reported in FY12.

Highlights

In June, Microsoft released the public preview of Windows 8.1 which will be made available to OEMs in August.

The company unveiled its next-generation gaming and entertainment console, Xbox One. It also announced a new Xbox 360 with new designs. It also announced that the company had sold 76 million Xbox 360 units worldwide.

In June 2013, Microsoft partnered with Best Buy to create the Windows Store only at 500 Best Buy locations across the US and more than 100 Best Buy and Future Shop locations in Canada.

Financials

Windows Division

Microsoft’s Windows Division has reported revenues of $4.41 billion, registering a 6.2% growth year-on-year (YoY) from $4.15 billion in Q4-FY12. For the FY13, the division reported revenues of $19.23 billion, up by 5% from $18.4 billion that it had reported in FY12.  The division posted an operating profit of $1.09 billion for the quarter, down from $2.42 billion profit in Q4-FY12.

Online Services Division 

Microsoft’s online services division reported revenues of $804 million for the quarter, registering a 9% growth from $735 million revenue in Q4-FY12, whereas for FT13, the company reported revenues of $3.2 billion, up 12% from $2.87 billion it had reported in FY12.  The division reported an operating loss of $372 million for the quarter, a significant improvement from $6.67 billion loss in Q4-FY12, whereas it reported $1.28 billion operating loss for FY13.  Microsoft mentioned Bing organic US search market share was 17.9% for the month of June 2013.

Entertainment and Devices Division

The entertainment and devices division reported revenues of $1.91 billion for the quarter, a 8% increase from $1.78 billion revenue in Q4-FY12. For FY13, the division reported revenues of $10.16 billion, up 6% from $9.6 billion that it had reported in FY12.  The division reported an operating loss of $110 million for the quarter and an operating profit of $848 million for FY13.

The company noted that during the quarter, transactional revenue within Xbox LIVE grew nearly 20%. The company also unveiled its next-generation gaming and entertainment console, Xbox One.

Business Division

Microsoft’s Business Division reported revenues of $7.2 billion, up 14% from $6.32 billion in Q4-FY12, whereas, for FY13 it reported revenues of $24.72 billion, up from $24.1 billion that it had reported in FY12. The division reported an operating profit of $4.9 billion for the quarter, an improvement from $4.1 billion profit in Q4-FY12, whereas, it reported operating profit of $16.2 billion for FY13, up from $15.8 billion in FY12.

The company informed that Office 365 is now on a $1.5 billion annual revenue run rate.

Download – Press Release | Financials | Presentation