Microsoft released the financial results for the second quarter that included a 14% increase in revenue and a 60% increase in profit from the same quarter last year. Microsoft reported EPS (earnings per share) of $0.74 that surprised Wall Street with most analysts predicting $0.59. The improved results were helped by "Exceptional demand for Windows 7," according to Microsoft CFO Peter Klein. In fact, Microsoft says that it sold over 60 million Windows 7 licenses since the launch on October 22nd which make it the fastest selling operating system in Microsoft history.
While the Windows client business is doing exceptional the same can not be said for Microsoft's other business units. Profit from the Server and Tools Division and the Microsoft Business Division remained flat compared with last year as enterprise spending has not yet recovered as fast as consumer spending.
The Online Services division (Bing) is loosing $100 million more this quarter than the same quarter last year as online advertising continues to struggle industry wide.
The Xbox division known formally as the Entertainment and Devices division is showing some good signs with a increase of $250 million in profit compared to the same quarter last year. It looks like the Xbox is finally starting to pay off and will be profitable for every quarter this fiscal year.