Microsoft reports increased revenue due to Windows 8, profit down

By Anand Vyas

Microsoft reported a 2.7 percent increase in revenue for the quarter ending December 31, 2012, from $20.9 billion a year ago to $21.5 billion over the past three months. Even with extra help from Windows 8 and supporting hardware, the company saw a 3.7 percent drop in profit year over year, from $6.62 billion to $6.38 billion.

Windows 8 might not have been the shining star that Microsoft had hoped for but it did give the company a boost in that division. We do know that the company sold 60 million Windows 8 licenses as of earlier this month, however. Redmond saw revenue shoot up 24 percent in their Windows division for the quarter to $5.88 billion. This was reportedly good for an 11 percent increase, we’re told.

Interestingly enough, the company still is keeping quiet with regards to how many Surface with Windows RT tablets have been sold to date – a hot topic among investors and analysts alike. The bigger brother to the currently-available tablet, Surface Pro, will go on sale February 9 starting at $899 for the 64GB model.

On the flip side, Microsoft’s Entertainment and Devices division, which happens to be home to the Xbox, dropped 11 percent year over year to $3.77 billion. Furthermore, the Business division which is awaiting the release of the new Office fell 10 percent to $5.69 billion.

Share value in Microsoft dropped roughly two percent in after-hours trading following the earnings report.