Blog Post

Earnings: MSFT FY1Q06 Profits Up 24 Percent; Street Expected More

Microsoft’s net income for FY1Q06 jumped 24 percent to $3.14 billion, or 29 cents per share, up from $2.53 billion, or 23 cents a share for FY1Q05. (That includes a charge of $361 millionfor the RealNetworks’ settlement.) Not bad, but Thomson First Call was expecting 30 cents a share. Revenues hit $9.74 million, up 6 percent from the previous year to $9.74 billion, but, again, analysts expected a tad more.
Scanning division results for what should be the last earnings release based on the segments prior to the current reorganization:

MSN: Ad revenue was up 20 percent, keying off strength in display, but revenue of $564 million was flat with just 1 percent increase year over year and a dip from the previous quarter.. Internet access revenue declined 30 percent as MSN continues to wind down its dial-up service. Estimated user base: 440 million-plus monthly uniques; 215 million-plus active Hotmail accounts; 185 million-plus IM accounts; 25 million-plus “MSN Spaces”

Mobile & Embedded Devices: $74 million revenue, up 51 percent year over; Windows Mobile revenue was up 41 percent.

Home & Entertainment: Revenue down 17 percent year over year to $5256 million. Xbox 360 will launch in North America 11/22, Europe 12/2, and Japan 12/10.

Earnings release | Webcast | PowerPoint

mp3logo1.gif You can download the audio of the conference call q-and-a here. (4.4 Megs, 24 min.)