Microsoft’s performance during the fourth quarter not only exceeded the Street’s expectations but also saved some blushes. The Redmond-based company earned $16.04 billion in revenue, a 22% rise compared to the same period last year, and enough to get it past Apple’s quarterly revenue of $15.7 billion. The Street had foreseen Apple bettering Microsoft’s quarterly revenue for the first time ever, but MS had other plans.
Windows 7 continued its stellar performance during the quarter and, along with Office 2010, accounted for a large part of the company’s growth. “We saw strong sales execution across all of our businesses, particularly in the enterprise with Windows 7 and Office 2010,” said Kevin Turner, chief operating officer.
According to a press release issued by the company, “Operating income, net income and diluted earnings per share for the quarter were $5.93 billion, $4.52 billion and $0.51 per share, which represented increases of 49%, 48% and 50%, respectively, when compared with the prior year period.”
What would you do if you came into $10.8 billion? You'd brag to your friends and anyone else who would listen, that's what. That's also what Intel is doing, who pulled in exactly that much in second quarter revenue, ranking as the best quarter the world's largest chip maker has ever had. And for what it's worth, that's a 34 percent jump in the company's year-over-year numbers. Put another way, life is good in Santa Clara.
"Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company's 42-year history," said Paul Otellni, Intel president and CEO. "Our process technology lead plus compelling architectural designs increasingly differentiate Intel-based products in the marketplace. The PC and server segments are healthy and the demand for leading-edge technology will continue to increase for the foreseeable future."
Despite questions about the future of netbooks, Intel's Atom platform (processor and chipset) remains a strong seller, contributing $413 million in revenue, up 16 percent sequentially. Intel also noted a 2 percent sequential gain in its PC Client Group revenue with record mobile microprocessor revenue, and a 13 percent sequential gain in its Data Center Group, breaking yet another record.