Microsoft hits $19 billion in sales, $6.66 billion in profit for 2Q

SEATTLE — Boosted by strong sales of its new operating system Windows 7 during the holidays, Microsoft blew past forecasts in its quarterly earnings reported Thursday.

The company reported net income of $6.66 billion, or 74 cents per share, in the second quarter of fiscal 2010, a 60 percent increase from the same quarter in 2009.

The results were far higher than analysts’ forecast of 59 cents per share.

Sales reached $19 billion during the quarter, a 14 percent increase from $16.63 billion in the same quarter in fiscal 2009.

The results include $1.71 billion of deferred revenue, or 14 cents
per share, related to the Windows 7 upgrade program and pre-sales of
the operating system to computer makers before the software launched in
October. Adjusted for the revenue, second quarter sales were $17.31 billion, and 60 cents earnings per share.

“Exceptional demand for Windows 7 led to the positive top-line growth for the company,” Peter Klein, chief financial officer at Microsoft,
said in a statement. “Our continuing commitment to managing costs
allowed us to drive earnings performance ahead of the revenue growth.”

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