FY14 Q2 - Devices and Consumer Hardware Performance - Investor Relations – Microsoft

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Earnings Release FY14 Q1

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Devices and Consumer Hardware

Revenue growth driven by Surface sales

  • Surface
  • Improved sales and marketing efforts
  • Sold more than double the units than previous quarter
  • Surface 2 and Surface Pro 2 launched Oct. 22nd
  • Xbox
  • 1.2 million Xbox consoles sold
  • Xbox One will launch Nov. 22nd
  • Gross margin
  • Product costs grew with increased Surface sales and non-product expenses incurred to ready inventory lines for Surface 2 launch

D&C Hardware revenue increased $401 million or 37%, due primarily to Surface revenue of $400 million. The general availability of Surface RT and Surface Pro started October 26, 2012 and February 9, 2013, respectively.

D&C Hardware gross margin decreased $242 million or 54%, due to a $643 million or 101% increase in cost of revenue, offset in part by higher revenue. D&C Hardware cost of revenue increased, primarily due to $645 million higher Surface cost of revenue. Surface product costs increased with higher volumes sold, while other costs grew as we ready inventory lines for the Surface 2 launch and the holiday sales cycle.

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.

Download Earnings Related Files

FY14 Earnings Release Schedule

  • Q2-Thursday, January 23
  • Q3-Thursday, April 24
  • Q4-Tuesday, July 22

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