Microsoft announces 19% profit rise
Technology corporation Microsoft has reported a profit increase of 19%. Profits for the first quarter of the year were at $6.06 billion. Revenue was at $18.8billion, an increase of 18.2% from $17.4billion a year ago. The results are better than analysts expected.
The growth has been driven by sales of back end corporate software, such as the Bing search engine and Xbox videogame business. PC sales are down across the world, but other services have picked up the slack.
Microsoft’s Windows business – the software that powers the vast majority of computers – turn over very small profits. And the figures suggest that the downturn in PC sales is beginning to catch up with Microsoft.
Microsoft shares were up by 2.3% to $29.45 – this is roughly the same level as 2002.
Yesterday, Microsoft announced Chief Financial Officer Peter Klein he will leave his post after 4 years at the company. In an interview he said: “I’ve made the decision to refocus myself on my personal life,” Mr Klein said he has been considering his departure for several months.
The company said it will appoint one of Microsoft’s existing executives as Mr Klein’s successor in coming weeks.