Microsoft’s initial third quarter report seemed dismal indeed- their quarterly revenues totaled only $12.9 billion, a decline of just over 14 percent from the same period a year ago. However, adjusted revenue kicked in $1.5 billion in deferred Windows 7 receipts, bringing the quarterly take to $14.4 billion, just 4 percent down compared to a year ago. Profits had slipped as well; online services (including Bing) had only a $10 million difference between revenues and losses vs a nearly $200 million gap a year go.
Microsoft is highly optimistic about the future, however – the Windows 7 is expected to be a much better seller than the lamentable Vista, and X-Box sales are strong. PC growth was up 2 percent compared with a year ago but considerably more vs. the previous quarter.
Microsoft has said publicly that Bing “market share in US is up every month” and “US search revenue is up mid-single digits.” Microsoft predicts growth in Online Services to continue for the rest of 2009, but said that entertainment and devices would just hold steady.
Nick Wingfield of teh WSJ blogged live at the Windows 7 reelase, keeping an eye on Microsoft CEO Steve Ballmer, who was optimistic about Microsoft’s future; he noted several of Ballmers’s comments as he did a minute to minute blow by blow:
11:07: In the first big understatement of the day, Ballmer says, “I’m an enthusiastic personality.”
11:08: Windows 7 is in 45,000 stores, he says. “Not only am I Steve Ballmer, and I’m a PC — I’m Steve Ballmer, and I’m a Windows 7 PC.” He then asks, “What’s special about Windows 7?”
11:09: The answer: 3,000 engineers, 50,000 partners and eight million beta testers.
If the Yahoo Microsoft partnerships goes as planned, Bing could conceivably have nearly 30% of the search Market tied up – big things may be coming to Microsoft!