Microsoft (NASDAQ:MSFT) profit declined slightly in the first three months of 2012, the third quarter of reporting period 2011-2012, to $5.1 billion. But the result surpassed analysts’ estimates, while revenue rose 6% to $17.4 billion due to higher than expected market performance of PCs. American company that produces Windows operating system, had in the corresponding period last year, a net profit of $5.2 billion and sales of $16.4 billion. The company profit surpassed analysts’ estimates contacted by Reuters, due to sales of personal computers, which have held up better than expected to the tablets’ assault.
In the first nine months of 2011-2012 fiscal year, ended March 31, Microsoft had revenues of $55.6 billion, up 6%, and a profit of $17.4 billion, from $17.2 billion in the same time frame of prior reporting period.
Microsoft results fueled investors’ optimism for the revival of the largest software developer in the world, which preparing for this year a tablet version of Windows operating system and in the hope to succeed, in 2012, to diminish the market dominance of Apple and Google smartphones and tablets.
“The results were significantly better than expected. Revenue rose 6%, and this happened before the start of the new product cycle, which should occur around October”, comments a Nomura Securities analyst. Microsoft has not announced when Windows 8 will be released, the next version of the popular operating system, but most industry experts expect the launch of the product on the market in October. Windows 8 will open a new niche on the tablet market which may be a serious competitor for Apple’a iPad. The market will await in the same period a new version of Windows Phone OS for smartphones.
Microsoft shares rose 2.5% in New York in electronic trading session on Thursday evening, reaching a maximum of four years, rising by 20% this year. However, Microsoft shares are still traded under year 2000 quotations, mainly because of the perception that Microsoft does not bring enough innovation to be able to fight with Apple and Google.
Reply