FY11 Q3 - Windows and Windows Live Division Performance - Investor Relations - Microsoft

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Earnings Release FY11 Q3

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Windows & Windows Live Division Performance

Over 350M Windows 7 licenses sold to date

  • WWLD revenue growth in line with the PC Market*
  • Business PC refresh continued; business PCs up 9%
  • Strong growth in multi-year licensing agreements
  • Enterprise deployments more than doubled over the past 6 months
  • Consumer PCs down 8%, including netbook decline of 40%
  • IE9 released along with IE10 Platform Preview
  • Windows Intune launched
* Adjusted for impact of Windows 7 launch in prior year

Windows Division revenue was driven primarily by growth in PC market segments. We estimate that sales of PCs to businesses grew approximately 9% this quarter and that sales of PCs to consumers declined approximately 8%. The decline in consumer PC sales included an approximately 40% decline in the sales of Netbooks. Taken together the total PC market declined an estimated 1% to 3%. Considering the impact of the Windows 7 launch in the prior year, we estimate Windows Division revenue and OEM licenses were in line with the PC market. Revenue was also driven by growth in sales of multi-year licensing agreements to businesses and somewhat higher inventory and attach rates offset by higher relative growth in emerging markets.

Windows Division operating income decreased as a result of decreased revenue and higher sales and marketing expenses. Sales and marketing expenses increased $127 million or 21% reflecting increased corporate marketing activities and increased advertising of Windows and Windows Live.

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FY11 Earnings Release Schedule

  • Q4-Thursday, July 21