As far as a breakdown, the net income was $5.87 billion after operating income of $6.17 billion. Sales of entertainment and devices was $1.49 billion, online services sales were $662 million, business revenues were $5.78 billion, server and tool revenues were $4.64 billion, and Windows (including Windows Live) brought in $4.74 billion.
Windows and Windows Live sales fell 1% for the fourth quarter and fell 2% for the year. The company said that would have been growth od 2% to 4% had it not been for “the impact of the prior year Windows 7 launch and revenue deferral.” Windows 7 has now sold over 400 million licenses and the company claims that business deployments continue to accelerate.
Online Services Division sales rose 17% for the quarter and 15% for the full year on gains in search revenue. Bing’s U.S. search share rose 340 basis points year-over-year to 14.4%.
The 2012 guidance is being offered as this was Microsoft’s year-end for operating expense growth of only about 3% to 5%. Until we have actual revenue and earnings guidance, Microsoft’s full impact from the report should be considered unfinished business.
Shares closed up $0.03 at $27.09 against a 52-week trading range of $23.32 to $29.46; shares are up about 2% at $27.66 in the after-hours reaction.
JON C. OGG
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