Microsoft sees 23 per cent more revenue from Windows, posts $20.49B in revenue for Q3 2013

Microsoft has reported its Q3 2013 earnings, showing quarterly revenue of $20.49 billion, which is up 18 per cent versus the quarter last year. It was a solid quarter for the folks in Redmond, as operating income was $7.61 billion, up 8 per cent year-over-year and net income came in at $6.06 billion. 

After the launch of Windows 8 launch year, Microsoft says it has seen a 23 per cent increase in Windows sales from the year ago quarter. The Windows division brought in revenues of $5.70 billion, which now accounts for revenue from the Surface RT and Surface Pro. 

“The bold bets we made on cloud services are paying off as people increasingly choose Microsoft services including Office 365, Windows Azure, Xbox LIVE, and Skype,” said Steve Ballmer, chief executive officer at Microsoft. “While there is still work to do, we are optimistic that the bets we’ve made on Windows devices position us well for the long-term.”

Even with the success in Windows income, industry watchers have noted it is not where it needs to be. Last week, research firm IDC noted that PC shipments suffered their biggest decline ever. “"While some consumers appreciate the new form factors and touch capabilities of Windows 8, the radical changes to the UI, removal of the familiar Start button, and the costs associated with touch have made PCs a less attractive alternative to dedicated tablets and other competitive devices," said Bob O'Donnell at IDC last week.

In its latest earnings statement, Microsoft also announced Xbox LIVE now accounts for 46 million members worldwide. The Entertainment and Devices division of Microsoft roped in revenue of $2.53 billion, a solid increase of 56 per cent from year ago quarter. The Server & Tools and Microsoft Business divisions posted large revenues of $5.04 billion and $6.32 billion respectively. 

Furthermore, Microsoft has another executive shakeup is occurring, following Steven Sinofsky leaving last year. The company just announced Microsoft CFO Peter Klein will leave by the end of next quarter, after serving with the company for eleven years. His replacement will be found in the coming weeks. 

“I’ve had a great experience as CFO and overall in my time at Microsoft,” Klein said. “We have an incredibly strong finance organization, and I’m looking forward to working with my successor on the transition through the end of the fiscal year.”



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