Microsoft (MSFT) Tops Q4 Views Led by Strong Office Sales, Server Performance

July 19, 2012 4:57 PM EDT
Shares of Microsoft (Nasdaq: MSFT) shares are stronger in late-session trading Thursday, following fourth-quarter numbers which saw a beat on the bottom and top lines.

Revenue for the Redmond, WA-based software behemoth rose 7 percent on an adjusted basis to $18.60 billion, from $17.37 billion in the same period last year. GAAP revs rose 4 percent.

Operating income improved 12 percent on a non-GAAP basis to $6.925 billion, or 73 cents per share. GAAP operating income dropped 97 percent.

Overall, the Street was looking for revs of $18.14 billion and EPS of 62 cents.

On the call, the company said it benefited from a lower tax rate.

Office is said to be installed on over 1 billion PCs globally. Microsoft Business Division revs rose 7 percent in the quarter, to $6.29 billion. The company said consumer PC sales should recover with Windows 8.

Windows & Windows Live sales fell 13 percent to $4.145 billion, though Microsoft noted that "adjusting for the impact of the Windows Upgrade Offer, Windows Division non-GAAP revenue declined 1% for the fourth quarter and 1% for the full year."

Online Services Division revs rose 8 percent to $735 million, with Bing organic searches accounting for 15.6 percent of U.S. market share in June. Microsoft also noted, "Bing-powered U.S. search market share, including Yahoo! properties, was approximately 26% for the month of June 2012, down 30 basis points quarter over quarter and down 100 basis points year over year."

Server & Tools revs rose 13 percent to $5.092 billion, with strong performance from SQL Server and System Center.

Microsoft is 2.5 percent better after hours.

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