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Microsoft Has Blowout Quarter, Stock Up Over $30 Billion

Microsoft has released its quarterly earnings report, and how good was it? The stock is up $30 billion!

msft-october-25-2007.png

Microsoft stock in after hours trading is up $3.55, which translates to $33.37 billion. Microsoft gained in the last few hours more than most companies are worth, smashing nicely above the $300 billion barrier. Microsoft stock was last $35.56 in July of 2001, a huge gain for the stock.

How good was the quarter? The facts:

  • Revenue of $13.76 billion, 27% higher than the same quarter last year.
  • Operating income:$5.92 billion
  • Net income: $4.29 billion
  • Diluted earnings per share: $0.45
  • Fastest growth of any first quarter in eight years
  • Cash on hand: $6.637 billion (enough to buy 1/3 of Facebook and have over a billion left over)
  • Microsoft beat estimates by $1.2 billion and 6 cents, proving the doom and gloom about the software company is dead wrong.
  • Microsoft has now sold 85 million copies of Vista (hardly a failure), 25 million in the last two months.
  • $1.8 million copies of Halo 3 have been sold, bringing in revenue of $330 million.
  • Operating margins: 43%, meaning the company is immensely profitable.

My favorite part, the revenue and profit/loss per division:




Three Months Ended
September 30,
Revenue


2007 2006



Segments











Client




$4,138 $3,316


Server and Tools




2,900 2,496


Online Services Business




671 536


Microsoft Business Division




4,111 3,419


Entertainment and Devices Division




1,929 1,011


Unallocated and Other




13 33









  Total revenue






$13,762 $10,811












Three Months Ended
September 30,
Operating Income / (Loss)


2007 2006



Segments











Client




$3,367 $2,660


Server and Tools




962 771


Online Services Business




(264) (102)


Microsoft Business Division




2,694 2,227


Entertainment and Devices Division




165 (142)


Corporate-Level Activity




(1,006) (940)









  Total operating income






$5,918 $4,474









As you can see, revenue in the Entertainment and Devices division was up 90%, resulting in the first-ever profit for the division, almost entirely attributable to Halo 3 (but not entirely, so its possible, but not guaranteed, they could show a profit next quarter, too). Revenue was up over twenty percent in the Online Services division, but it lost 150% more money, due to rising costs. Revenue in the Client division, which sells Windows Vista, was up $800 million, a really good sign.

Amazing, just amazing. Microsoft really hit this one out of the park.

UPDATE: Venkat reminds me in the comments that this is, indeed, the Entertainment and Devices division’s second quarterly profit. The first? When Halo 2 came out, of course!

October 25th, 2007 Posted by Nathan Weinberg | Corporate, General | 5 comments



Microsoft Affiliate Network Adds Windows Live Toolbar

The Microsoft Affiliate Network has added a new offer, letting you invite people to download the Windows Live Toolbar and earn a $1 commission. Here’s one of the ad units available:

They’ve also got a 200×170 button, 180×620 skyscraper, and 140×260 mini scraper.

There’s also an MSN AdCenter affiliate program, but you have to be a Microsoft partner to be eligible. This is what the banner looks like:

There are also these text paragraph ads:

Connect with buyers with Microsoft adCenter

Search Marketing isn’t about reaching a lot of people; it’s about reaching the right people: Buyers. Through Microsoft adCenter, you can reach out to 97 million MSN users, 83% of whom have recently purchased online.1 So sign up and start using adCenter,.
¹Source: Nielsen//NetRatings, June-07, US Home/Work Combined; Nielsen//NetRatings @ Plan, Summer 2007 Release.

And this one:

Reach more with adCenter

Reach out to 97 million potential customers with Microsoft adCenter today.1
¹Source: Nielsen//NetRatings, June-07, US Home/Work Combined

And two others of that style. Plus a more standard text link ad (”Sign Up for a Microsoft adCenter Account”), about eight variations worth.

This is in addition to the Windows Live OneCare offer I’ve mentioned before. The OneCare offer has been reduced to 50 cents (from $1.50), so you might want to jump on the Toolbar offer in case its price goes down.

October 25th, 2007 Posted by Nathan Weinberg | Advertising, Live, Windows, General | no comments

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Sign Up For Windows Live ID on Your Phone

You can now sign up for a Windows Live ID (the account, formerly called a Passport, that lets you use Live services like Hotmail) from your mobile device, bypassing the need to use a computer to do it. That means that if users try to use a Live service from their phone and don’t have a Live ID, there won’t be the annoying barrier of having to wait to get home to actually sign up.

To do so, go to mid.live.com/reg, or just try to use a Live service and click “Get a Windows Live ID”. I just used it to create “joeyjoejoejunior5@hotmail.com”*, and its a two step process. Just enter a Live ID on page one and (assuming its available) enter a password, birth year and four-letter captcha on page two, and you’re done. It’s so much easier on the phone than the computer, you might want to use this method every time!

* - Tell me you got the reference! Jeez, read this.

And feel free to spam that email.

October 25th, 2007 Posted by Nathan Weinberg | Live, Windows | one comment

New Dell Comes With Sideshow

Dell has unveiled a new PC, the XPS 420, which comes with an integrated Windows SideShow display. SideShow, the exciting technology that allows PCs to have external screens with certain vital data, hasn’t gotten a lot of traction since Vista was released, but Dell’s endorsement may help turn things around. The display is on the top of a desktop tower, which may make it difficult to access if the computer is on a desk next to the monitor (and thus positioning the display above your head), but it should work nicely if your PC is on the floor.

The specs of this PC:

  • Intel processors, up to Core 2 Extreme 3 GHz
  • Vista Home Premium or Ultimate
  • Up to 4 GB RAM
  • Up to 2 terabyte RAID hard drives
  • Up to a Blu-Ray drive and dual layer DVD R/W drives
  • Up to 768MB nVidia GeForce 8800 GTX
  • Available AGEIA® PhysX® physics accelerator
  • Up to Sound Blaster X-Fi Xtreme Music audio (cannot order advanced audio and the PhysX card, presumably due to a lack of expansion slots)
  • Available ATI Theater 650 PRO Combo TV Tuner with up to Gyroscopic Remote and Xcelerator
  • Comes with Dell Bluetooth Wireless Media Hub + Bluetooth Keyboard and Mouse
  • 802.11b/g wifi card (but no available 802.11n)
  • Up to Bose Companion 3 Series II Multimedia Speaker System
  • Free 10GB DataSafe Online Backup for 1 Year

As maximum configured by me, with a 4-year warranty and no PhysX card (audio is more important to me), the system is $5,835. At base, you could get it for $1,499 with a 20 inch flat-panel monitor, 2.66 GHz Core 2 Duo, 2 GB RAM, 320GB Hard Drive, dual layer 16X CD/DVD burner (DVD+/-RW) drive, a 1-year warranty and no Office suite.
(via the SideShow team blog)

October 25th, 2007 Posted by Nathan Weinberg | Sideshow, Vista, Windows | no comments

Big Changes Afoot As Facebook Gets Microsoft-ized

Valleywag has a funny list of the ways Microsoft could change Facebook, now that it owns a portion of the company, like bringing poorly defined branding and overly complicated product names to the popular social network. Me, I’m thinking some other ways Microsoft could change Facebook:

  • New Facebook Group “Bill Gates is a H0TT1E!” all of a sudden gets 1 million members
  • Facebook gifts, Free Gifts and Naughty Gifts get DRM; now you can only “use” your virtual glass of beer three times in three days
  • Instead of error pages when applications fail to load, Facebook now displays cryptic page with technical information on a blue background
  • Facebook immediately announces some killer new features, then proceeds to not deliver them. For 12 years.
  • Some new Facebook features will only work in Internet Explorer, or on a giant freakin’ touchscreen table
  • Releases “Poke Server”, a server operating system businesses can install to manage their pokes from a central location. Pokes can be synced accross devices, accessed remotely, and are properly archived to comply with Sarbanes-Oxley.
  • Facebook split into two tiers, one of which is called Facebook Silver and can send Pokes, add friends and buy Gifts, and Facebook Gold, which can send Facebook messages, install applications and have online gaming. All Facebook users are assigned a “FacerScore”, based on how social they are, earning Facebook Achievements such as “First poke from a member of the opposite sex” and “Updated Relationship Status more than three times a week”.
  • Bill Gates announces he has installed the “Causes” application and will be shifting all of his charity work over to it.
  • Early betas of new Facebook features are given to those with MSDN subscriptions, but are leaked to Bit Torrent. All Facebook applications now require product keys.
  • Facebook attempts to beat down MySpace by adding useless attention-seeking features like “Channels” and “Active Desktop”, as well as bundling special Facebook friends with a new copy of Windows.
  • Hackers swarm on Facebook and try to overload it with viruses and spyware.
  • The European Commission immediately swoops in and demands Facebook give away all its source code and networking protocols to its competitors.

I actually do wish Microsoft and Facebook engineers would start coming up with cool ways to integrate Microsoft products with Facebook. The smart thing would be to tie in Facebook integration to MS products using public APIs, giving Microsoft some nice integration that any other company could also choose to use with their products. Microsoft pushes great integration, but doesn’t lock anyone else out. Could it happen?

October 25th, 2007 Posted by Nathan Weinberg | Humor | no comments

My Facebook Vista Sidebar Gadget

myfacebook-sidebar-gadget.png

With Microsoft buying a portion of Facebook, it’s only appropriate that tonight’s Windows Vista Sidebar Gadget is a Facebook one. This Gadget, MyFacebook, shows you if you have new messages in your inbox, pokes, pending friend requests, lets you see your friends albums, friend lists and events in a popout, shows your status and a scrolling display of your friends’ statuses, and even lets you update your status right from the Gadget.

Getting it to work is tricky. After you’ve installed the Gadget, click the Facebook logo to login to your Facebook account. You’ll get a prompt to authenticate the Gadget, and entering your username and password should launch Internet Explorer. If it doesn’t work, you’ll need to open Internet Explorer (not your default browser, it has to be IE) and add https://login.facebook.com, http://login.facebook.com and https://facebook.com to your trusted sites list. To do so, click Tools>Internet Options, the Security tab, click Trusted Sites, then Sites, then add the sites. Start with the first site, then if it doesn’t work, add the next, and so on, until you can log in.

After you’ve logged in the Gadget, click its settings icon and add the feeds it requests. Do not select the option to show your friends’ albums, because it really does take forever to load. You can have multiple instances of this Gadget, so you can keep tabs on more than one Facebook account at the same time, as you can see in my screenshot.

There’s a lot going on in this Gadget, so take the time to figure it all out. It’s worth it. It may have some flaws, but this Gadget is already one of the best I’ve installed, and I’ve installed hundreds. Check out the Gadget page on Facebook to discuss with other users, and go to the Gadget author’s blog for more information and answers to your questions.

October 25th, 2007 Posted by Nathan Weinberg | Sidebar, Vista, Windows | one comment