In response to the results, Peter Klein, Chief Financial Officer at Microsoft said “Exceptional demand for Windows 7 led to the positive top-line growth for the company. Our continuing commitment to managing costs allowed us to drive earnings performance ahead of the revenue growth.”
Report Highlights for Microsoft Corporation’s Second Quarter
- Revenue – $19.02 Billion (an increase of 14%)
- Operating Income – $8.51 Billion (an increase of 43%)
- Net Income – $6.66 Billion (an increase of 60%)
- Diluted Earnings Per Share – £0.74 per share (an increase of 57%)
- Over 60 million Windows 7 licenses sold
Windows 7 and the challenge of Chrome OS
The release of Windows 7 has been a much needed boost for Microsoft, especially following the disappointing 2007 release of Microsoft Vista, an operating system that Microsoft needed to release following 6 years of inactivity (Microsoft XP was released way back in 2001). Unlike Vista, Windows 7 has been received much better in the business community due to a simpler user interface and greater stability.
With user support for Windows XP ending in April 2014 many expect an increasing number of companies to migrate to Windows 7 in the coming years, however Google’s new Chrome Operating System (due for release in the second half of 2010) may reduce take up. Chrome OS (based on LINUX) will be a free open source operating system, something that could be very appealing to cash strapped CEOs when compared to expensive Microsoft alternatives. Chrome OS is being designed for those that spend most of their time on the Internet, and with a greater number of businesses using Cloud Computing and more and more applications migrating away from a company’s in house server the Operating System may fair very well. As reported yesterday, a greater number of large business will look at free alternative software in 2010.
- Home Group – Share files (music, picture, video etc) or devices (e.g. printers) on a home network
- Jump Lists – Jump quickly to pictures, songs, websites etc that you use regularly
- Snap – Drag windows to the edge of the screen and the windows will snap into place
- Windows Live Essentials – Includes Messenger, Photo Gallery, Mail, Writer, Movie Maker, Family Safety & Toolbar
- Windows Search – Quickly find documents, files etc. A significantly better interface than XP
- Windows Taskbar – A flexible, easy to use taskbar (similar to Apple’s OSX)
- Full 64 Bit Processor Support – A greater number of PCs are running 64 bit chips
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