Microsoft Beats The Street: Net Income Up 51 Percent, Office Revenue Up 15 Percent

Microsoft just released better than expected Q1 earnings, posting first-quarter revenue of $16.2 billion, an 25% increase from the same period of the prior year. Analysts expected revenue to come in at $15.8 billion. Operating income, net income and diluted earnings per share for the quarter were $7.12 billion, $5.41 billion and $0.62 per share, which represented increases of 59%, 51% and 55%, respectively, when compared with the prior year period. Analysts were expecting diluted earnings per share of $0.55. Microsoft said that the company saw year-over-year growth across all business segments. Revenue from Office 2010 grew over 15% in its first full quarter in market. Xbox 360 consoles grew 38% and Bing continued to gain market share. The biggest growth came from Windows, with revenue up 66% to $4.8 billion. Windows operating profits up 124% to $3.2 billion (from $1.5 billion last year). Revenue from online business was up 8%, with online advertising up 13% for the quarter. Unfortunately, Microsoft reported that online business still lost $560 million in operating income.