Microsoft Firing on All Cylinders, Posts Record Quarter

Paul Lilly

It's been somewhat of a banner year so far for Microsoft, at least in terms of revenue. Driven by solid business and consumer demand, Microsoft announced record first quarter revenue of $17.37 billion for its first fiscal quarter ended September 30, 2011, representing a 7 percent increase from one year prior. It's also higher than what Wall Street was expecting.

"We saw customer demand across the breadth of our products, resulting in record first-quarter revenue and another quarter of solid EPS growth," said Peter Klein , chief financial officer at Microsoft. "Our product portfolio is performing well, and we’ve got an impressive pipeline of products and services that positions us well for future growth."

The Microsoft Business Division reported $5.62 billion in first quarter revenue, up 8 percent from one year ago when Microsoft launched Office 2010. Microsoft's Server & Tools segment grew 10 percent year-over-year to $4.25 billion, which marks the sixth consecutive quarter of double digit growth, and the company's Windows and Windows Live Division revenue increased 2 percent to $4.87 billion, a figure Microsoft says is "in line with the PC market."

"We had another strong quarter for Office, SharePoint, Exchange, and Lync, and saw growing demand for our public and private cloud services including Office 365, Dynamics CRM Online, and Windows Azure," said Kevin Turner, chief operating officer at Microsoft. "With a great set of consumer products like Windows 7 PCs, Windows Phone 7.5, Xbox and Kinect, we are excited about the holiday buying season."

The next time Microsoft reports quarterly revenue, the numbers will include the results of Skype, the company said.

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