FY14 Q2 - Performance - Investor Relations - Microsoft
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Earnings Release FY14 Q2
Performance
Double-digit growth in Commercial and Devices & Consumer segments drives record revenue
- Successful holiday quarter for Devices & Consumer segment
- Sold 7.4 million Xbox consoles, including 3.9 million Xbox One consoles
- Continued progress on Surface, revenue and units more than doubled sequentially
- Windows OEM revenue declined 3%, reflecting strong 12% growth in Windows OEM Pro revenue, offset by declines in non-Pro SKU’s as consumer demand continues to be soft
- Commercial business continues to outpace the overall market
- SQL Server revenue grew double-digits, with SQL Server Premium revenue growing more than 25%
- System Center showed continued strength with double-digit revenue growth
- Commercial cloud services revenue grew 107%
- Office 365 seats, Azure customers and Dynamics CRM net seat adds all grew over 100%
Revenue increased $3.1 billion or 14%, due mainly to higher D&C Hardware and Commercial Licensing revenue.
Operating income increased $198 million or 3%, reflecting higher revenue, offset in part by higher cost of revenue and research and development expenses. Key changes in cost of revenue and operating expenses were:
• Cost of revenue increased $2.6 billion or 46%, primarily due to higher volumes of Xbox and Surface sold, as well as higher datacenter expenses.
• Research and development expenses increased $220 million or 9%, due mainly to increased investment in new products and services in our Devices and Studios and Applications and Services engineering groups.
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Related Information
FY14 Earnings Release Schedule
- Q3-Thursday, April 24
- Q4-Tuesday, July 22