Microsoft's Entertainment and Devices Division Reports Making Money for the Year and a Small Quarterly Loss

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MicrosoftMicrosoft announced its financial results for its fourth fiscal quarter and fiscal year ended June 30, 2008.
For the fourth quarter, Microsoft reported net income of $4.297 billion, compared to $3.035 billion in the same quarter the previous year. For the year, Microsoft reported net income of $17.681 billion, compared to net income of $14.065 billion in the prior year.


Microsoft credited the launch of Microsoft's new line of server products, Vista licenses and Xbox 360 sales for its considerable income. FI readers would probably be interested to learn more about the performance of the Entertainment and Devices Division (EDD) that includes PC and Xbox 360 gaming.

For the quarter, the EDD unit reported revenues of $1.575 billion compared to $1.153 billion in the previous year. For the year, the EDD unit reported revenues of $8.140 billion compared to revenues of $6.069 billion in the previous year. The EDD division reported an operating loss for the quarter of $0.188 billion compared to an operating loss of $1.223 billion in the same quarter the previous year. For the year, EDD reported operating income of $0.426 billion compared to an operating loss last year of $1.969 billion.

EDD reported that fourth quarter revenues increased primarily as a result of increased Xbox 360 sales. During the fourth quarter, Microsoft reported selling 1.3 million Xbox consoles compared to 0.7 million in the same quarter the previous year. The previous year's quarter was so lo because of the $1.1 billion charge the company took in conjunction with expanding warranty coverage for the Xbox 360. But for the most part, the improved performance of the EDD unit reflects improved sales for the Xbox 360.

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This page contains a single entry by Editor published on July 17, 2008 3:29 PM.

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