Microsoft profit surges but falls short of expectations
Microsoft failed to impress stock markets with a record 35% rise in first quarter profit, after a run of positive results from other tech bellwethers increased expectations on Wall Street.
The software giant’s stock fell around 5% after it reported its result. It rebounded slightly but fell another 1.31% in after-hours trading to $30.98 (€23.41).
Revenue rose 6% to $14.50 billion year-on-year, resulting in net income growing 35% to $4.01 billion, and operating income by 17% to $5.17 billion.
The sales figure fell just short of the high-end of analysts’ expectations of $14.8 billion, Bloomberg said.
The bulk of growth in the quarter came from increased sales of the new Windows 7 PC operating system, though CFO Peter Klein told Reuters that businesses were also increasing their spending on PCs and servers.
“We are also seeing tremendous interest in our market-leading cloud services for business,” he said in a statement.
Revenue at the firm’s entertainment and devices division were up from $1.62 billion a year ago to $1.66 billion, helping the unit turn an operating loss of $41 million in 2009 into a $165 million profit.