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.

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.


Show Comments