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Friday, October 21, 2011

postheadericon Microsoft revenues up but analysts question Windows strength

Group Office enhances PC sales slow growth and stop thinning margins analysts seeking the next big thing - even if the losses to reduce the research division of Bing

Microsoft posted record

income up 11% to $ 17.37bn in the first quarter, but operating profits were up only 1% to $ 7.2 billion as Windows, servers and devices and entertainment activity showed a slow-growing. The results were fermented by improvements in the business of Microsoft Office.

net income for the quarter to end September rose 6% to $ 5.7 billion, against $ 5.4 billion the previous year.

Although the income from your business of Windows rose to $ 4.87bn, 1.7%, slightly below the 2% growth in shipments in the PC industry, except Apple, benefit division fell 1% to $ 3.25bn. The fall in earnings reflected the problems of society to piracy in China and the Far East, which are growing markets in PC sales - a point that the Chief Executive Steve Ballmer noted above, saying that the company gets only 1 / 20 of the income of Windows PCs sold in China and the United States.

But the software giant based in Redmond experienced strong growth in sales and profits of your business office of packages for which 2010 revenues increased 7.7% to 5.6 billion U.S. dollars and profits up 5.7% to $ 3.7 billion.

The overall results are in line with analysts' forecasts. From Microsoft, which have changed over the $ 20 - $ 30 range the last decade, fell 0.5% in after-hours trading to $ 26.87. It closed at $ 27.04 on Nasdaq. "I've always had Windows again lost, but not as much as has the last two quarters," said Brendan Barnicle, an analyst at Pacific Crest Securities. "They agreed to the EPS [earnings per share], which exceeds Microsoft generally, "said Barnicle." quarter [fiscal] first room is not big season for Microsoft, and it was not an exception. "

The weak point is still continuing its online services division, where your search engine Bing. But he showed signs of improvement, with revenues up 18.6% to U.S. $ 625 - though still lower than the previous three quarters - and the continuing losses narrow significantly, from $ 494m, compared to a loss of 560 million U.S. dollars a year earlier. The Online Services division has not taken advantage of the Christmas period 2005, and Microsoft's interest in buying Yahoo is estimated to be derived from the hope that his research partnership to pay. Yet some analysts say could have turned a corner, with the loss of his being the smallest of the seven quarters.

by Bing U.S. market increased by 3.5 percentage points, reaching 14.7% over the previous year, but from Yahoo search - which is powered by Bing - fell for the they share the combined companies was only 27

The fall
point in the Windows division of long-term benefits of the changes in the computer industry as markets slow in western China and the Far East become the new growth markets. Microsoft has seen revenues and profits derived from Windows PC sold steady decline, even in the last four years, the PC-payments above $ 60 at the end of 2007 to $ 56 last quarter, with the figures published by Microsoft and the computer calculations is shipped from research firms Gartner and IDC.

income was also significantly reduced in the same period, from about $ 50 per PC for just over $ 37 now, although the previous quarter was just over $ 32. The long-term trend, even if it means that Microsoft needs to find new ways to convince people of the West to buy more expensive PCs, or to encourage new growth trends.


This is clearly part of the unit behind its new Windows 8 "Metro" design, introduced in September, which will be available in about a year and is designed to run both desktops standard and tablet devices - which Microsoft is far behind Apple iPad and the many suppliers that offer shelves with Google's Android software


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