Office 2010 Earnings take-away Microsoft is still

Microsoft;s brass is continually trying to find the next billion dollar company and has caught a toe into every thing from healthcare to power monitoring. But as the company;s 2nd quarter earnings for fiscal 2010, which Microsoft released on January 28, present, Windows is nonetheless the big wheel that retains on turning in Redmond.Consumer revenue of Windows 7 buoyed Microsoft to report record earnings, even soon after deferrals had been figured in. Microsoft noted net revenue of $6.66 billion, or 74 cents a share,Office 2007, on income of $19.02 billion, which included $1.71 billion in Windows seven deferred income for your quarter.As component of that announcement, Microsoft noted that it's got marketed far more than sixty million Windows seven licenses to date. The combined Windows as well as the Windows Reside division had running revenue of $5.39 billion on income of $6.nine billion, compared to the year-ago quarter;s running earnings of $2.71 billion on income of $4.06 billion.Business gross sales of Windows seven — unsurprisingly, given typical enterprise product sales, testing and deployment cycles — have yet to kick in for Windows seven. That isn;t because organization users are waiting for Windows 7 Service Pack (SP) one, which is widely expected to ship some time this calendar 12 months, Microsoft officials said. In fact,Office 2007, Microsoft is seeing much more organization activity around upgrades towards the latest version of Windows than it's got with previous launches, according to Microsoft;s new Chief Financial Officer Peter Klein.“People want Windows 7 on all devices on all form factors,Windows 7 64 Bit,” said Klein during today;s call with Wall Street analysts. (In case you had been wondering, that question wasn;t prompted by a question about the Apple iPad. Nobody asked about it during the Q&A session.)Klein mentioned that netbooks currently comprise about 11 percent of the PC market and Windows is currently on 90 percent of these machines. Windows 7 is a lot more than half of that base (XP, and to a very much lesser extent, Vista) are on the rest of the Windows netbooks.Yes, Office is still the other massive Microsoft cash cow (with revenues of $4.74 billion for that Enterprise Division this quarter), and that unit ended up really kicking in for Microsoft when the economy and Vista sales were down. But in Q2, Small business Division revenues and running earnings had been both down, in comparison towards the year-ago quarter. Microsoft officials attributed the decline, in part,Office 2007 Keygen, towards the imminent arrival of Office 2010. (Office revenue comprise more than 90 percent of the Organization Division;s revenues; Dynamics products are the other 10 percent.)(Detailed breakdowns for each division can be found in Microsoft;s latest 10-Q, filed on January 28.)Server and Tools held its own (revenues up two percent, primarily simply because of Enterprise Client Access License (CAL) suites, System Center and SQL Server). But services/consulting revenues had been down two percent, or $32 million. The Online Services Division (the search/advertising unit) is still in the red. Online access (dial-up) continues to plummet, and online advertising was off. In Entertainment and Devices,Microsoft Office 2010, gaming console and game gross sales were down, but Xbox Live revenues had been up.Here;s a much more detailed breakdown by division of income and running revenue (click on the image below to enlarge).Microsoft cut 800 jobs in the second quarter of FY 2010 and spent $59 million in severance payments. No analyst on today;s call asked whether there would be a lot more layoffs planned for this year. The Softies did say they planned to continue to keep a tight rein on costs. While the Windows division spent far more than usual on sales/marketing simply because of Windows 7 launch-related activities and ads, other divisions cut back on not just headcount, but also income and marketing, also as research and development expenses.