FY12 Q1 - Performance - Investor Relations - Microsoft

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Earnings Release FY12 Q1

NarrativePower BI


Solid results driven by strong, broad-based demand

  • Strength in the enterprise annuity business
  • Office 2010 momentum continues
  • Continued cloud momentum led by Office 365 and Xbox LIVE
  • Double-digit EPS growth
  • Product pipeline announcements

Revenue increased primarily due to strong sales of the 2010 Microsoft Office system and Server and Tools products. Revenue for the three months ended September 30, 2011 included a favorable foreign currency impact of $409 million.

Operating income was up slightly reflecting increased revenue, offset in part by increased operating expenses. Key changes in operating expenses were:

• Cost of revenue increased $638 million or 20%, primarily reflecting higher Xbox content royalty costs, higher headcount-related expenses, primarily related to Enterprise Services, and increased costs associated with our online offerings, including traffic acquisition costs.

• General and administrative expenses increased $225 million or 24%, due mainly to Puerto Rican excise taxes, increased legal costs, and higher headcount-related expenses.

Headcount-related expenses increased across the company reflecting annual increases in pay and bonuses, changes in our employee compensation program, and a 3% increase in headcount from September 30, 2010. Diluted earnings per share increased reflecting increased net income and the repurchase of 323 million shares during the 12 months ended September 30, 2011.

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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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards

FY12 Earnings Release Schedule

  • Q2-Thursday, Jan 19
  • Q3-Thursday, April 19
  • Q4-Thursday, July 19