Microsoft Falls On Mixed Results
NEW YORK (TheStreet) -- Microsoft's (MSFT) second-quarter was boosted by strong results from its Server & Tools division and Windows 8 licenses, helping propel the company's earnings past Wall Street expectations.
The Redmond, Wash.-based firm earned 76 cents a share on a GAAP basis during its fiscal second quarter, generating $21.46 billion in revenue. Analysts polled by Thomson Reuters were expecting 75 cents per share on $21.5 billion in revenue for the second quarter.
"Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers," said Microsoft CEO Steve Ballmer, in a statement. "With new Windows devices, including Surface Pro, and the new Office on the horizon, we'll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need."
Of note was the Windows Division, which jumped 24% year-over-year to $5.88 million, thanks to Windows 8. Microsoft has sold over 60 million Windows 8 licenses to date, it said. The Server & Tools business saw a 9% year-over-year increase in sales to $5.19 billion and Online Services jumped 11% from the year-ago period to $869 million, led by a 15% climb in online advertising revenue.
Microsoft reaffirmed its fiscal year 2013 operating expense guidance of $30.3 billion to $30.9 billion.
The company exited the quarter with $68.3 billion in cash and cash equivalents.
Shares of Microsoft closed the session higher, up 0.07% to finish at $27.63. The stock is moving lower in extended trading, down 1.77% to $27.14, according to Nasdaq.com.
The company will hold a conference call at 5:30 P.M. EST to discuss the results.
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--Written by Chris Ciaccia in New York
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