Microsoft Posts Record Sales Year

Microsoft has posted record sales for fiscal year 2011 based on strong showings for its Office software suite, server programs, and Xbox 360 video game console. It's a somewhat surprising result, given that Windows sales had actually started to decline.

According to reports, for the fiscal year ending in June Microsoft amassed $69.4 billion in total revenue, a record high and an increase of 12 per cent compared to fiscal year 2010. Of the total, approximately $23 billion was net income, also a substantial increase (23 per cent) from last year. (Source: computerworld.com)

Net Income Represents 30% Boost

In the last quarter of fiscal 2011, Microsoft's revenue topped out at just over $17 billion, an 8 per cent jump from the same period in 2010. Most impressive about the fourth quarter was the Redmond-based firm's net income, which nearly reached $6 billion, representing a 30 per cent increase over last year.

Much of the growth can be attributed to a strong showing for Microsoft Office 2010. Microsoft's Business Division saw its revenue jump 16 per cent in fiscal 2011, thanks in large part to the 100 million-plus Office licenses that have been sold thus far.

The $22 billion in annual revenue reported by the Microsoft Business Division surpasses the yearly revenue for the company's Windows and Windows Live Division, long considered the firm's flagship department. (Source: pcmag.com)

Also showing strong was the Server and Tools division, whose revenue increased 11 per cent for the year.

Microsoft Kinect Provides Big Boost to Xbox 360 Sales

But the most impressive outing may have been the Entertainment and Devices Division, responsible for the Xbox 360 video game console.

Its sales went up an astounding 45 per cent in fiscal 2011 and 30 per cent in the fourth quarter, largely because of the popularity of the system's new Kinect hands-free gaming peripheral. The division generated just under $9 billion in revenue for the year. (Source: nytimes.com)

Together, the earnings helped Microsoft beat analyst estimates, which had been in the neighborhood of $61 billion for the year.