Software subscriptions push Microsoft earnings up

Software subscriptions push Microsoft earnings up

Microsoft has reported a year-on-year increase in sales and net profit for its fourth fiscal quarter as it benefited from multi-year software subscription deals.

Net profit for the quarter ended June 30 was $US1.92 billion, compared with $1.53 billion in the previous year, the software vendor said in a statement. This year's figure was reduced by $533 million in after-tax law suit settlement charges, while last year's result included a write-off charge of $806 million, Microsoft said.

Revenue for the quarter was $8.07 billion, up 11 per cent from $7.25 billion a year earlier. Growth was driven primarily by multi-year licensing deals for server products and applications such as Office in Microsoft's Information Worker unit, as well as a 25 per cent revenue jump at the MSN Internet division, Microsoft said.

Looking ahead, Microsoft expects revenue for its first quarter to come out between $7.9 billion and $8.1 billion. Last year the company reported first quarter revenue of $7.75 billion.

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