Seeking Alpha

Microsoft's enterprise licensing strong, Windows sales decline narrows

  • Microsoft's (MSFT) new Commercial Licensing reporting segment (inc. Office and Server & Tools licenses, as well as enterprise Windows sales) posted 7% Y/Y revenue growth in FQ1, and accounted for 66% of the software giant's gross margin. Healthy growth for SQL Server, Lync, and SharePoint fueled the increase.
  • "Commercial cloud" sales rose 103% Y/Y, contributing to a 28% increase in Commerical Other revenue.
  • Windows OEM sales only fell 7% Y/Y after dropping 15% in FQ4. Surface revenue came in at $400M. Overall, Microsoft's Devices and Consumer Licensing revenue fell 7% Y/Y, and D&C hardware rose 37%. D&C Other, which includes Internet services, posted 17% sales growth.
  • MSFT +5.8% AH. FQ1 results, PR
  • Previous: Microsoft's new reporting segments
Comments (6)
  • Wonder how Bing is doing can't wait for the call!
    24 Oct 2013, 04:49 PM Reply Like
  • D&C Other revenue was $1.635 billion, with a gross margin of $0.352 billion. That's an increase of 17 percent for revenue but a decrease of 3 percent for gross margin. The revenue increase was driven by a substantial 47 percent growth in advertising revenue on the back of increased search query volume (with Microsoft reporting that Bing now has an 18 percent share in the US) and greater revenue per search. Xbox Live transactions also grew by more than 25 percent. Office 365 Home Premium has more than 2 million subscribers; this number has doubled since May this year.
    24 Oct 2013, 07:11 PM Reply Like
  • It will do great going ahead with Windows 8.1.They have integrated Bing Search inside OS just by pressing Win Key. It makes life simple. :)
    24 Oct 2013, 04:55 PM Reply Like
  • "It makes life simple." I like simple in my life.
    24 Oct 2013, 05:10 PM Reply Like
  • In your face MS h8rs
    24 Oct 2013, 07:38 PM Reply Like
  • Strong CC, the future that they're painting is quite rosy, and the "One Microsoft" strategy looks like the right move at least preliminary.
    24 Oct 2013, 08:04 PM Reply Like
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