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Microsoft 1Q profit, sales top views; shares jump

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Posted October 25, 2013

Microsoft posted quarterly revenue and earnings Thursday that easily topped Wall Street forecasts, marking a healthy start to a companywide overhaul it announced in July that should help the software giant transform into a devices and services company.

 
Microsoft CEO Steve Ballmer speaks in San Francisco on August 23, 2013
Microsoft CEO Steve Ballmer speaks in San Francisco on August 23, 2013
 

Its stock rose nearly 6 percent in after-hours trading.

“Our devices and services transformation is progressing,” CEO Steve Ballmer said in a statement with the company’s fiscal first-quarter results. Ballmer said in August he’ll step down within 12 months and the search is on to find his successor.

Microsoft’s net income in three months through Sept. 30 grew 17 percent to $5.24 billion, or 62 cents per share, from $4.47 billion, or 53 cents per share, a year ago.

That beat the 54 cents expected by analysts polled by FactSet.

Revenue rose 16 percent to $18.53 billion, also beating the $17.79 billion analysts were expecting.

Microsoft’s revenue from its Surface tablets hit $400 million, representing a gain in revenue and more than a doubling of unit sales from the quarter that ended in June, helped by a price cut to its slimmed down Surface RT model in July. Profitability in the division that houses Surface fell, mainly because the cost of making Surface tablets rose by $645 million from a year ago.

Read more at: Phys.org

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