Updated: July 12, 2020 (February 1, 2010)

  Analyst Report

Windows 7 Boosts Q2'10

My Atlas / Analyst Reports

1,376 wordsTime to read: 7 min

A pickup in consumer PC sales and the recognition of deferred revenue from a Windows 7 upgrade program helped Microsoft show record revenues (US$19.02 billion) and profits (US$6.66 billion) in the second quarter of its 2010 fiscal year, which ended Dec. 31, 2009. While Windows showed strong growth, revenue in Microsoft’s four other business segments was nearly flat or down from last year, and unearned revenue from long-term volume licensing dropped from last year’s corresponding quarter, as IT spending remained weak. Despite the revenue pressure, tight control over operating expenses helped earnings grow.

(For an overview of Microsoft’s recent financial performance, see “Microsoft Financials for the Last Five Quarters“.)

Windows Outshines Other Segments

The Windows and Windows Live segment showed solid performance, driven by a pickup in PC sales and the release of Windows 7, as well as the recognition of deferred revenue from previous quarters. However, revenue in the company’s other business segments was up only slightly in the case of Server and Tools, and down for the other three segments.

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