FY11 Q2 - Windows and Windows Live Division Performance - Investor Relations - Microsoft

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Earnings Release FY11 Q2

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Windows Division Performance

Windows 7 anniversary - Over 300M licenses sold to date

  • WWLD revenue growth inline with the PC Market*
  • Business PC refresh continues
  • More than 20% of PCs running Windows 7
  • 90% of enterprise companies have started their formal migration to Windows 7
  • Next version of Windows will support system-on-a-chip architectures
*Adjusted for prior year of Windows 7 deferred revenue recognition and impact of Windows 7 launch in prior year ("launch impact")

Windows Division revenue decreased primarily due to the prior year launch of Windows 7, including recognition of approximately $1.7 billion of revenue in the prior year related to the Windows 7 Deferral. OEM revenue decreased $1.8 billion or 32%. This decrease was driven by the prior year launch of Windows 7, reflecting a decrease in inventory in our distribution channels, and lower Windows attach rates in China, partially offset by PC market growth. Other revenue decreased $314 million or 20%, driven primarily by the prior year launch of Windows 7. Considering the impact of the Windows 7 launch in the prior year, we estimate Windows Division revenue growth was in line with PC market growth. We estimate total worldwide PC shipments from all sources grew approximately 2% to 4%.

Windows Division operating income decreased primarily as a result of decreased revenue. In addition, sales and marketing expenses increased $22 million or 3% reflecting increased advertising of Windows and Windows Live.

IMPORTANT NOTICE TO USERS (summary only, click here  for full text of notice); All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our  Forms 10-Q and 10-K.

Download Earnings Related Files

FY11 Earnings Release Schedule

  • Q3-Thursday, April 28
  • Q4-Thursday, July 21

Microsoft Corp (MSFT)

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