Microsoft Reports $20.9B Revenue, 525M Windows 7 Sold

Things are still running well at Microsoft.

Microsoft doing all right for itself as it announced a quarterly revenue of $20.89 billion for the quarter ended Dec. 31, 2011, a 5 percent increase from the prior year period.

“We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services,” said Steve Ballmer, chief executive officer at Microsoft. “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 Microsoft Business Division reported $6.28 billion in second quarter revenue, a 3 percent increase from the prior year period. Nearly 200 million licenses of Office 2010 have been sold in the 18 months since launch.

The Server & Tools business posted $4.77 billion in second quarter revenue, an 11 percent increase from the prior year period, reflecting double-digit revenue growth in Windows Server and SQL Server premium editions and more than 20 percent growth in System Center revenue.

The Windows and Windows Live Division posted revenue of $4.74 billion, a 6 percent decline from the prior period. Microsoft has sold over 525 million Windows 7 licenses since launch.

The Online Services Division reported revenue of $784 million, a 10 percent increase from the prior year period. Bing organic US market share grew to 15.1 percent while Bing-powered US market share, including Yahoo! properties, was approximately 27 percent.

The Entertainment & Devices Division posted revenue of $4.24 billion, an increase of 15 percent from the prior period. The Xbox 360 installed base now totals approximately 66 million consoles and 18 million Kinect sensors. Xbox LIVE now has 40 million members worldwide, an increase of 33 percent from the prior year period.

“In addition to the continued strength of our commercial business, this holiday season was the strongest in Microsoft history, thanks to good sales execution and compelling products like Xbox 360 and Kinect,” said Kevin Turner, chief operating officer at Microsoft. “We are seeing a lot of excitement for new devices, from Windows 7 Ultrabooks to new Windows Phones, as well as growing anticipation for Windows 8.”