Microsoft's Windows Revenue Falls Flat, Still Posts Record Quarter

Paul Lilly

Windows and Windows Live Division revenue dipped 1 percent for the fourth quarter ended June 30, 2011, and was down 2 percent for the year even though Windows 7 sold more than 400 million licenses, Microsoft announced . Nevertheless, the Redmond software giant posted big numbers overall, with $17.37 billion for the quarter, an 8 percent increase from the same quarter one year ago. For the fiscal year, Microsoft reported record revenue of $69.94 billion, a 12 percent jump from last year.

"Throughout fiscal 2011, we delivered to market a strong lineup of products and services which translated into double-digit revenue growth, and operating margin expansion," said Peter Klein, chief financial officer at Microsoft. "Our platform and cloud investments position us for long-term growth."

Disregarding the flat Windows revenue, these are strong numbers for Microsoft, whose Entertainment & Devices Division picked up the slack with a whopping 30 percent growth in the fourth quarter, and 45 percent for the full year "due to the ongoing momentum of the console, Kinect, and Xbox Live."

Strong, but not strong enough to beat Apple, which posted $28.57 billion for the quarter, and according to TechCrunch is now a $100 billion-a-year company.

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