Microsoft Turns In Mixed Earnings Report

Photo of Jon C. Ogg
By Jon C. Ogg Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Microsoft Corporation (NASDAQ: MSFT) has released its second quarter fiscal earnings for 2013 and shares are getting clipped for the software giant. Earnings came to $0.76 EPS but were $0.81 EPS on an adjusted basis and revenues were $21.46 billion. Thomson Reuters had estimates of $0.75 EPS and $21.53 billion in sales. Cash and cash equivalents came to $68.3 billion at the end of the quarter. This translates on a non-GAAP basis to a 5% sales gain, met by a 4% operating income gain.

Microsoft did not offer guidance for the year other than that its operating expenses would be $30.3 to $30.9 billion for fiscal 2013. Until guidance is offered in the call we would consider this unfinished business. Here are some of the by-unit revenue figures:

  • Windows Division posted revenue of $5.88 billion, a 24% increase. The company said that non-GAAP revenue increased 11% for the second quarter and Microsoft said it has sold over 60 million Windows 8 licenses to date.
  • Server & Tools business reported $5.19 billion in sales, up 9% from the prior year period and it was driven by double-digit percentage revenue growth in SQL Server and System Center.
  • Microsoft Business Division posted $5.69 billion of revenue, a 10% decrease from the prior year period. Adjusting for the impact of the Office Upgrade Offer and Pre-sales, Microsoft Business Division non-GAAP revenue increased 3% for the second quarter.
  • Online Services Division reported revenue of $869 million, an 11% increase from the prior year period. Online advertising revenue grew 15% driven by an increase in revenue per search.
  • Entertainment and Devices Division posted revenue of $3.77 billion, a decrease of 11% from the prior year period. Adjusting for the Video Game Deferral, the division’s non-GAAP revenue decreased 2% for the second quarter.

Shares closed up two-cents at $27.63 on the day 2% and its shares traded down just over 2% at $27.09 in the after-hours reaction. Again, this should be considered unfinished business until guidance is seen.

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618