FY11 Q4 - Windows and Windows Live Division Performance - Investor Relations - Microsoft

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Earnings Release FY11 Q4

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Windows & Windows Live Division Performance

Windows 7 momentum continues

  • Over 400m licenses of Windows 7 sold to date
  • Acceleration of Windows 7 enterprise deployments
  • IE 9 launched
  • Windows Intune launched
  • Previewed Windows 8

Windows Division revenue reflected relative performance in PC market segments. We estimate that sales of PCs to businesses grew approximately 11% this year and sales of PCs to consumers declined approximately 1%. The decline in consumer PC sales included an approximately 32% decline in the sales of netbooks. Taken together, the total PC market increased an estimated 2% to 4%. Revenue was negatively impacted by the effect of higher growth in emerging markets, where average selling prices are lower, relative to developed markets, and by lower recognition of previously deferred Windows XP revenue. Considering the impact of Windows 7 launch in the prior year, including $273 million of revenue recognized related to the Windows 7 Deferral, we estimate that Windows Division revenue was in line with the PC market.

Windows Division operating income decreased as a result of decreased revenue and higher sales and marketing expenses. Sales and marketing expenses increased $224 million or 8% reflecting increased advertising of Windows and Windows Live.

IMPORTANT NOTICE TO USERS (summary only, click here  for full text of notice); All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our  Forms 10-Q and 10-K.

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FY12 Earnings Release Schedule

  • Q1-Thursday, Oct 20
  • Q2-Thursday, Jan 19
  • Q3-Thursday, April 19
  • Q4-Thursday, July 19

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