Microsoft posts $165 million profit for their first fiscal quarter.

[blurredvision]

http://xbox360.ign.com/articles/830/830446p1.html

October 25, 2007 - Microsoft's Entertainment and Devices Division, which includes the Xbox 360 segment, generated $165 million in profit during the first quarter of its fiscal year, on revenue of more than $1.9 billion, the company reported today.

During the corresponding quarter last year, the division lost $142 million on revenue of about $1 billion. Microsoft in part credited the massive launch of Halo 3 with the games segment's success this quarter. The title generated more than 3.3 million units during the second half of September, a performance Microsoft bills as the biggest entertainment launch in history.

Overall, Microsoft Corp. reported revenue of $13.76 billion for the first fiscal quarter, a 27% increase over the same period of the prior year. Operating income and net income were $5.92 billion and $4.29 billion respectively.

"This fiscal year is off to an outstanding start with the fastest revenue growth of any first quarter since 1999," said Chris Liddell, chief financial officer at Microsoft. "Operating income growth of over 30% also reflects our ability to translate revenue into profits while making strategic investments for the future."

The thing that amazes me is that they've almost doubled their revenue from the same quarter last year. Of course, Halo 3 had lots to help with that, but it still counts towards the same total.

Much better news for Microsoft stockholders today than Sony stockholder 🙁.

 

[Queasy]

Ya know, I'd really love to see the revenue broken down between the games sales, console sales, live arcade, live arcade marketplace, extras like the themes and gamerpics, etc. I know I'll probably never get that but the 360 has so many different revenue streams that it would be interesting to know.

 

[nycxandy]

Yay, 360!

 

[Modeps]

Originally posted by: nycxandy
Yay, 360!

 

[eelw]

But is chump change to the over $1 billion earned by Nintendo in their 2nd quarter.

 

[blurredvision]

Originally posted by: eelw
But is chump change to the over $1 billion earned by Nintendo in their 2nd quarter.

That happens when you are able to sell the shit out of 6 year old hardware with a new name.

 

[Dacalo]

Nothing more needs to be said than:

Halo 3

 

[ponyo]

Originally posted by: eelw
But is chump change to the over $1 billion earned by Nintendo in their 2nd quarter.

Yeah but look at Microsoft as a whole. $4.29 billion dollars net profit in 3 months. :laugh: That's $1.43 billion dollars profit a month. :shocked:

Nintendo meanwhile earned $1.16 billion profit in 6 months. That's only 193 million dollars a month. Microsoft earns 193 million dollars profit in 4 days. :laugh:

Nintendo DS may print money but nothing prints money like Windows and Office.

I own Microsoft stock. 🙂 It's my largest holding followed by Costco and then Merck. Nothing like owning a monopoly.

 

[herkulease]

Originally posted by: Naustica

Originally posted by: eelw
But is chump change to the over $1 billion earned by Nintendo in their 2nd quarter.

Yeah but look at Microsoft as a whole. $4.29 billion dollars net profit in 3 months. :laugh: That's $1.43 billion dollars profit a month. :shocked:

Nintendo meanwhile earned $1.16 billion profit in 6 months. That's only 193 million dollars a month. Microsoft earns 193 million dollars profit in 4 days. :laugh:

Nintendo DS may print money but nothing prints money like Windows and Office.

I own Microsoft stock. 🙂 It's my largest holding followed by Costco and then Merck. Nothing like owning a monopoly.

Yup. Add on the fact that Microsoft ONLY has 20 billion dollars in cash. Wonder what it would be if they never decided to do dividends. Someone correct me if I'm wrong but didn't their war chest reach close to 60 billion?

 

[ponyo]

Originally posted by: herkulease

Yup. Add on the fact that Microsoft ONLY has 20 billion dollars in cash. Wonder what it would be if they never decided to do dividends. Someone correct me if I'm wrong but didn't their war chest reach close to 60 billion?

Yes. Microsoft had about $56 billion in cash back in 2004 so they issued special one time $3 / shr dividend payment to use up about $32 billion. They also doubled their regular dividend payments to use up another $4 billion a year. They also announced $30 billion in stock buyback til 2008. If they hadn't done all these things, they would've probably around $80 billion in cash right now.

It's nice problem to have generating more than $1 billion in excess cash each month. Every month the cash keeps piling up. 🙂

 

[purbeast0]

come on, we all know that about $350 million of that $165 million is because of Halo 3 😛

EDIT;

R&C is waitin for me at home 😀

 

[BD2003]

Originally posted by: Naustica

Originally posted by: eelw
But is chump change to the over $1 billion earned by Nintendo in their 2nd quarter.

Yeah but look at Microsoft as a whole. $4.29 billion dollars net profit in 3 months. :laugh: That's $1.43 billion dollars profit a month. :shocked:

Nintendo meanwhile earned $1.16 billion profit in 6 months. That's only 193 million dollars a month. Microsoft earns 193 million dollars profit in 4 days. :laugh:

Nintendo DS may print money but nothing prints money like Windows and Office.

I own Microsoft stock. 🙂 It's my largest holding followed by Costco and then Merck. Nothing like owning a monopoly.

Indeed, but if one were to take into account all the money theyve lost on the xbox division since its inception many years ago, theyre still WAAAAAAAY in the red. The xbox 1 was very much windows/office subsidized. 😛

At the very least its finally turning around, the more competition, the better.

 

[sygyzy]

Originally posted by: Naustica

Originally posted by: herkulease

Yup. Add on the fact that Microsoft ONLY has 20 billion dollars in cash. Wonder what it would be if they never decided to do dividends. Someone correct me if I'm wrong but didn't their war chest reach close to 60 billion?

Yes. Microsoft had about $56 billion in cash back in 2004 so they issued special one time $3 / shr dividend payment to use up about $32 billion. They also doubled their regular dividend payments to use up another $4 billion a year. They also announced $30 billion in stock buyback til 2008. If they hadn't done all these things, they would've probably around $80 billion in cash right now.

It's nice problem to have generating more than $1 billion in excess cash each month. Every month the cash keeps piling up. 🙂

How did the dividends work? Why would MS *need* to spend $32billion?

 

[tatteredpotato]

Originally posted by: sygyzy

Originally posted by: Naustica

Originally posted by: herkulease

Yup. Add on the fact that Microsoft ONLY has 20 billion dollars in cash. Wonder what it would be if they never decided to do dividends. Someone correct me if I'm wrong but didn't their war chest reach close to 60 billion?

Yes. Microsoft had about $56 billion in cash back in 2004 so they issued special one time $3 / shr dividend payment to use up about $32 billion. They also doubled their regular dividend payments to use up another $4 billion a year. They also announced $30 billion in stock buyback til 2008. If they hadn't done all these things, they would've probably around $80 billion in cash right now.

It's nice problem to have generating more than $1 billion in excess cash each month. Every month the cash keeps piling up. 🙂

How did the dividends work? Why would MS *need* to spend $32billion?

I don't think they "needed to" it was just something to keep shareholders happy, but then again I know nothing about finance.

 

[potato28]

Originally posted by: sygyzy

Originally posted by: Naustica

Originally posted by: herkulease

Yup. Add on the fact that Microsoft ONLY has 20 billion dollars in cash. Wonder what it would be if they never decided to do dividends. Someone correct me if I'm wrong but didn't their war chest reach close to 60 billion?

Yes. Microsoft had about $56 billion in cash back in 2004 so they issued special one time $3 / shr dividend payment to use up about $32 billion. They also doubled their regular dividend payments to use up another $4 billion a year. They also announced $30 billion in stock buyback til 2008. If they hadn't done all these things, they would've probably around $80 billion in cash right now.

It's nice problem to have generating more than $1 billion in excess cash each month. Every month the cash keeps piling up. 🙂

How did the dividends work? Why would MS *need* to spend $32billion?

Maybe so they could buy their own country, make it into their world headquarters and make everyone who lives in the country work for Microsoft.

 

[sthaznpride17]

Originally posted by: potato28

Originally posted by: sygyzy

Originally posted by: Naustica

Originally posted by: herkulease

Yup. Add on the fact that Microsoft ONLY has 20 billion dollars in cash. Wonder what it would be if they never decided to do dividends. Someone correct me if I'm wrong but didn't their war chest reach close to 60 billion?

Yes. Microsoft had about $56 billion in cash back in 2004 so they issued special one time $3 / shr dividend payment to use up about $32 billion. They also doubled their regular dividend payments to use up another $4 billion a year. They also announced $30 billion in stock buyback til 2008. If they hadn't done all these things, they would've probably around $80 billion in cash right now.

It's nice problem to have generating more than $1 billion in excess cash each month. Every month the cash keeps piling up. 🙂

How did the dividends work? Why would MS *need* to spend $32billion?

Maybe so they could buy their own country, make it into their world headquarters and make everyone who lives in the country work for Microsoft.

You mean Redmond/Bellevue? 😛

 

[Oyeve]

Has MS ever NOT made a quartely profit?

 

[Queasy]

Originally posted by: Oyeve
Has MS ever NOT made a quartely profit?

For the games division they have frequently not made a quarterly profit. The only other time they did make a profit was after Halo 2 was released.