14 DAY TRIAL // The business release of Windows Vista and the 2007 Office System are at the core of the Microsoft quarterly record revenue, together with Exchange Server 2007. Microsoft announced a total revenue of $12.54 billion for the quarter that ended on December 31, 2006, topping even the most optimistic predictions in this aspect.
However, record revenue is synonymous with a 28% drop in net profit due to the Redmond Company's deferral of $1.64 billion in revenue that have been poured into the technology guarantee programs announced on October 24, 2006 for Vista and the Office 2007.
"Results this quarter exceeded our expectations across the board, with revenue growth at or above our high end guidance for all divisions," said Chris Liddell, chief financial officer at Microsoft. "Healthy PC and server markets as well as broad-based business and consumer demand for Microsoft offerings fueled revenue growth this quarter."
After drawing the line, Microsoft's operating income was of $3.47 billion, quarterly net income amounted to $2.63 billion and diluted earnings per share were $0.26. According to Microsoft, the growth in revenue for the quarter ended on December 31, 2006 would have been 14 percentage points higher than the revenue of the similar period of 2005, in the absence of the technology guarantee programs.
"The execution of our field sales and marketing teams were a major contributor to this quarter's extremely positive results," said Kevin Turner, chief operating officer at Microsoft. "Customers have responded positively with strong contract renewals and license sales. We are pleased with such strong financial results and look forward to making Windows Vista and the 2007 Microsoft Office system widely available to all customers next week."