FY13 Q1 - Performance - Investor Relations - Microsoft

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Earnings Release FY13 Q1

NarrativePower BI


Strong enterprise demand offset by PC market slowdown

  • PC market decline in anticipation of the launch of Windows 8
  • Strength in multi-year licensing revenue, 15% growth
  • Xbox continues its market share leadership in the U.S.
  • OSD operating performance improvement
  • Executing on product roadmap
  • Operating expenses up 2%

Revenue decreased mainly due to the deferral of $1.2 billion of revenue related to the Windows Deferral and $189 million of revenue primarily related to the Office Deferral, as well as due to lower Xbox 360 entertainment platform revenue, offset in part by strong sales of Server and Tools products and services. Revenue for the three months ended September 30, 2012 also included revenue for Skype, which was acquired October 13, 2011.

Operating income decreased reflecting lower revenue and increased cost of revenue and research and development expenses. Cost of revenue increased $391 million or 10%, primarily due to payments made to Nokia related to joint strategic initiatives and higher headcount-related expenses, primarily related to the Server and Tools Business. Research and Development expenses increased $131 million or 6%, due mainly to higher headcount-related expenses, primarily related to the Entertainment and Devices Division, as well as increased lab and localization costs.

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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FY13 Earnings Release Schedule

  • Q2-Thursday, January 24
  • Q3-Thursday, April 18
  • Q4-Thursday, July 18