14 DAY TRIAL // Windows Vistas... by the billions... According to the Redmond company, its latest Windows client enjoys an install base of over 100 million users. The figure was confirmed by Microsoft Chairman Bill Gates during his last keynote address at the International Consumer Electronics Show in Las Vegas on January 6, 2008. Vista, one of Microsoft's flagship products, together with the Office System, has driven the growth of the company's Client business, as well as the overall revenue for the second fiscal quarter of 2008.
"We are pleased with the progress of Windows Vista in the market. We've hit our stride with partners and customers and are looking forward to the release of our first service pack later this quarter," added Kevin Johnson, president of the Platforms and Services Division at Microsoft.
On January 24, 2008, the Redmond company has reported record revenue of $16.37 billion, meaning $6.48 billion operating income and diluted earnings per share of $0.50. According to these figures, Microsoft is experiencing a revenue jump of 30% compared to the same period of the past year. Operating income and diluted earnings per share are also up 87% and 92%, respectively.
"Revenue of over $16 billion this quarter exceeds our previous record by $2 billion. We are extremely pleased by the broad based strength of our business performance and field execution. Throughout the first half of our fiscal year, all of our businesses met or beat our expectations," revealed Chris Liddell, chief financial officer at Microsoft.
However, the growth is artificially inflated. Microsoft took a heavy hit on its revenue in the second quarter of Fiscal Year 2007 with a deferral of $1.64 billion of revenue and operating income which translated into $0.11 of diluted earnings per share. The deferral is a result of the technology guarantee programs. Had it not been for its impact, Microsoft would have only accounted for 15%, 27% and 32% growth when it comes down to revenue, operating income and earnings per share.
"We are in the midst of another strong year with great momentum heading into calendar year 2008. We continue to see healthy demand from both businesses and consumers in the United States and our growth in emerging markets is especially strong. Looking across Brazil, Russia, India and China, our field revenue reached a combined growth rate over 65% this quarter. As we look ahead, our Windows Server 2008 launch, with our virtualization solution, will further our quest to bring exceptional value to our customers," said Kevin Turner, chief operating officer at Microsoft.