XBox, Cloud Drive Microsoft's $6.5Bn Profit, No CEO Found

Written by Oonagh Reidy     24/01/2014 | 09:41 | Category: PLATFORMS

Windows sales down, but profits up $6.5bn in Q2

XBox, Cloud Drive Microsoft


AS Microsoft is still searching for a new CEO, it announced "record" revenues - up 14% to US$24.52 billion for the second quarter to December 31.  

Net income also soared to $6.56 bn, attributed to "strong progress" in its Devices and Consumer division, boisterous Xbox One and Surface tablet sales, and ongoing growth in Commercial  unit. Operating income also rose to $7.97 bn. 

CEO Steve Ballmer said Microsoft's changing focus is paying off. 

Image credit: Engadget
"The investments we are making in devices and services that deliver high-value experiences to our customers, and the work we are doing with our partners, are driving strong results and positioning us well for long-term growth," he said.  

However, Microsoft all-important Windows OEM unit, which accounts for a large proportion of its overall revenue, declined 3%, blamed on "continued softness" in the PC market, as its touch based Windows 8 OS fails to charm consumers.

But Windows OEM Pro sales were "strong" with 12% growth, the company said.

Devices and Consumer revenue grew 13% to $11.91 bn, Surface revenue doubled from $400m in Q1 to $893 million in Q2, as it gain traction. No unit sales were disclosed, however.

Microsoft sold 7.4 million Xbox's including 3.9 million Xbox One's and 3.5 million Xbox 360's into the retail channel.

 "We delivered record revenue as demand for our business offerings remains high and we made strong progress in our Devices and Consumer segment," said Amy Hood,  Microsoft CFO. 

Redmond's Commercial revenue grew 10% to $12.67 billion, a division that "continues to outpace the overall market, and our Devices and Consumer segment had a great holiday quarter," said Ballmer. 

Commercial cloud services revenue grew over 100% year-over-year, as customers embrace Office 365, Azure, and Dynamics CRM Online, and making long-term commitments to the Microsoft platform, the company said today. 

Despite the good results, which beat many analysts expectations, the search for Ballmer's replacement is still on, months after he announced his retirement. Execs from Ford, to Eriksson and Nokia CEO Steve Elop have all been rumored to be on the hiring list. 

MSFT shares rose 5% in after-hours trading.