Microsoft profits stagnate as Windows sales fall

Microsoft profits stagnate as Windows sales fall
Ballmer positive about the year ahead

Microsoft has announced company record revenues for a single quarter, but profits are slightly down on the same period last year.

The Redwood-based giant reported total revenue of $20.89 billion for the Q2 2012, which is up five per cent on the previous year's figure of $19.95 billion.

However the company's bottom line has fallen ever so slightly with quarterly profits of $6.62 billion compared with the $6.63 billion it reported for the three months ending December 31st 2010.

Microsoft delivered 78 cents in earnings per share

Windows loses will sting

Perhaps more pertinent for CEO Steve Ballmer will be the 6 per cent reduction in Windows sales to $4.74 billion. However, with Windows 8 out later this year, the company should be able to bounce back in 2012.

"We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services," said Ballmer.

"Coming out of the Consumer Electronics Show, we're seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012."

The business sector, which includes Microsoft Office, was up 3 per cent on last year.

Bing closer to profitability

In some better news for Microsoft, the Bing search engine is edging somewhat closer to being a profitable entity for the company.

In the last quarter, the division only lost $458 million compared to $559 million a year ago.

Via: AllThingsD

Chris Smith

A technology journalist, writer and videographer of many magazines and websites including T3, Gadget Magazine and He specializes in applications for smartphones, tablets and handheld devices, with bylines also at The Guardian, WIRED, Trusted Reviews and Wareable. Chris is also the podcast host for The Liverpool Way. As well as tech and football, Chris is a pop-punk fan and enjoys the art of wrasslin'.