On Thursday after the close, Microsoft (MSFT, Financial) issued its second-quarter 2012 results; here are some of the highlights from the press release and the conference call:
Revenue in the second quarter came in at $20.9 billion, up 5% from second-quarter 2011, and a quarterly record for Microsoft; net income and diluted EPS for the quarter were $6.6 billion, and $0.78 per share, respectively, flat year over year on a net income basis, and up a penny on an EPS basis (with the difference explained by buyback activity in the past 12 months). Through the first six months of the year, net income is up 2.6%, while diluted EPS has increased roughly 5%.
The Microsoft Business Division (MBD) reported $6.3 billion in second-quarter revenue (ahead of analyst estimates at $6.1 billion) and $11.9 billion year to date, an increase of 3% and 5%, respectively, from the prior year period; since Office 2010 was launched 18 months ago, nearly 200 million licenses have been sold. Revenue from Exchange and SharePoint both grew double digits, and revenue from Lync and Dynamics CRM grew by more than 30%.
The Server & Tools business posted $4.8 billion in second quarter revenue, an increase of 11%, with an equal percentage increase year to date with “double digit growth” coming from SQL Server and Windows Server.
The Windows and Windows Live Division posted revenue of $4.7 billion (shy of $4.9B estimate by analysts), a 6% decline from 2011 due to weakness in the consumer market (estimated decline of 6% in the quarter) that is expected to continue throughout the rest of the year; year to date, sales in the segment are down 2% to $9.6 billion. Collectively, Microsoft has sold over 525 million Windows 7 licenses since launch, with over 1/3rd of all enterprises running Windows 7.
In the Entertainment & Devices Division, revenue increased 15% to $4.2 billion. Amazingly, the installed base for Xbox 360 (the number #1 console in the U.S. for 2011 with 8.2 consoles sold and 46% of all console sales in the U.S. in December) is now approximately 66 million consoles and 18 million Kinect sensors; Xbox LIVE now has 40 million members worldwide, an increase of more than 30% from the same period in FY2011.
The Online Services Division reported revenue of $784 million, an increase of 10% year over year; year to date, revenues have increased 13% to $1.4 billion. Bing organic U.S. market share has now eclipsed 15%, an increase of 25% in market share since the start of calendar year 2011. This division continues to bleed cash (although the pace has slowed), losing $455 million in the quarter and nearly $1 billion year to date.
In the quarter, the company repurchased $1 billion in common stock, and paid $1.6 billion in dividends ($0.20 per share); year to date, the total cash returned to shareholders is $6 billion, split evenly between repurchases and buybacks.
In after hours trading the stock is up roughly 2.5%, and is closing in on $29 per share.
Revenue in the second quarter came in at $20.9 billion, up 5% from second-quarter 2011, and a quarterly record for Microsoft; net income and diluted EPS for the quarter were $6.6 billion, and $0.78 per share, respectively, flat year over year on a net income basis, and up a penny on an EPS basis (with the difference explained by buyback activity in the past 12 months). Through the first six months of the year, net income is up 2.6%, while diluted EPS has increased roughly 5%.
The Microsoft Business Division (MBD) reported $6.3 billion in second-quarter revenue (ahead of analyst estimates at $6.1 billion) and $11.9 billion year to date, an increase of 3% and 5%, respectively, from the prior year period; since Office 2010 was launched 18 months ago, nearly 200 million licenses have been sold. Revenue from Exchange and SharePoint both grew double digits, and revenue from Lync and Dynamics CRM grew by more than 30%.
The Server & Tools business posted $4.8 billion in second quarter revenue, an increase of 11%, with an equal percentage increase year to date with “double digit growth” coming from SQL Server and Windows Server.
The Windows and Windows Live Division posted revenue of $4.7 billion (shy of $4.9B estimate by analysts), a 6% decline from 2011 due to weakness in the consumer market (estimated decline of 6% in the quarter) that is expected to continue throughout the rest of the year; year to date, sales in the segment are down 2% to $9.6 billion. Collectively, Microsoft has sold over 525 million Windows 7 licenses since launch, with over 1/3rd of all enterprises running Windows 7.
In the Entertainment & Devices Division, revenue increased 15% to $4.2 billion. Amazingly, the installed base for Xbox 360 (the number #1 console in the U.S. for 2011 with 8.2 consoles sold and 46% of all console sales in the U.S. in December) is now approximately 66 million consoles and 18 million Kinect sensors; Xbox LIVE now has 40 million members worldwide, an increase of more than 30% from the same period in FY2011.
The Online Services Division reported revenue of $784 million, an increase of 10% year over year; year to date, revenues have increased 13% to $1.4 billion. Bing organic U.S. market share has now eclipsed 15%, an increase of 25% in market share since the start of calendar year 2011. This division continues to bleed cash (although the pace has slowed), losing $455 million in the quarter and nearly $1 billion year to date.
In the quarter, the company repurchased $1 billion in common stock, and paid $1.6 billion in dividends ($0.20 per share); year to date, the total cash returned to shareholders is $6 billion, split evenly between repurchases and buybacks.
In after hours trading the stock is up roughly 2.5%, and is closing in on $29 per share.
