Microsoft Corporation, the world’s largest software maker reported an increase in profit while sales as at its highest in two years. The report signifies that consumers spent more for personal computers running the Windows Operating System.
Profit-wise, the company’s net income climbed to 4.52 billion dollars or 51 cent a share, compared to the average of 46 cents a share. The good news was reported by Bloomberg, who also reported a 22 percent increase in sales or equivalent to 16 billion dollars in revenues- the most in two years.
What made this possible? Well, Microsoft has been benefiting a lot from economic recovery, where spending of large businesses had increased. The company sold more than 150 million copies of its newest Windows 7, making it the fastest selling operating system in the Redmond, Washington-based company’s history.
Truly, this is an indication that enterprises are spending and that Microsoft has a product that caters to that need and are appealing enough to customers.
Stock-market wise, Microsoft rose to 0.4 percent in after hours trading 25.95 dollars after climbing 72 cents or 2.9 percent, to 25.84 dollars at 4PM New York time on the Nasdaq Stock Market. The stock slid 21 percent last quarter, compared with a 12 percent drop in the Standard & Poor’s 500 Index.
Meanwhile, analysts had projected a total sales of 15.3 billion dollars for the fourth quarter which ended June 30. Also, net income in the fourth quarter of 2009 was 3.05 billion or 34 cents a share, on sales of 13.1 billion dollars – net income for the period included legal expenses, severance costs, and impairment investments.
The revenues are a total of several Microsoft’s division that included Server Revenues that was estimated to be about 4.1 billion dollars while Bing Gains Share rose to 12.7 percent.
Overall, Microsoft projected an increased of about 7 to 8 percent in technology spending for the whole year, which shall be a good sign for the company shall they be able to take advantage of the opportunity.