Microsoft Corp (MSFT)
Earnings Release  FY13 Q1
PC market transition ahead of launch
Inventory drawdown in anticipation of Windows 8
Windows 8 pre-sales revenue 40% higher than Windows 7 in comparative launch quarter
Double-digit growth in volume licensing
Enterprises continue Windows 7 migration
Surface pricing and availability announced on Oct 16

Windows Division revenue decreased from the prior year, due mainly to the deferral of $783 million of revenue related to Windows 8 Pre-Sales and $384 million of revenue related to the Windows Upgrade Offer. Windows Division revenue was also negatively impacted by a decline in the PC market, decreased inventory levels within distribution channels as OEMs and retailers began to prepare for the Windows 8 launch, and continued higher relative growth in emerging markets, where average selling prices are lower than developed markets.

Windows Division operating income decreased, due mainly to lower revenue. Operating expenses were impacted by higher research and development expenses, which were offset by lower sales and marketing expenses. Research and development expenses increased $43 million or 10%, primarily associated with Windows 8 and Surface. Sales and marketing expenses decreased $51 million or 8%, reflecting decreased corporate marketing activities, offset in part by increased advertising of Windows.

Download Segment Information:Excel (27KB)
Windows and Windows Live Division
RESULTS (in millions, except percentages)
Q113 Q112 Change
Revenue $ 3,244 $ 4,874 (33)%
Operating
Income
$ 1,646 $ 3,270 (50)%
FY13 Earnings Release Schedule
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