MICROSOFT CORP Quarterly Report for Q3 Ended Mar 31, 2013

Summary

Microsoft Corporation's Q3 FY2013 filing for the period ending March 31, 2013, demonstrates robust revenue growth of 18% year-over-year, reaching $20.5 billion. This increase was primarily driven by new product launches like Windows 8 and Surface, alongside strong performance in Server and Tools and Entertainment and Devices segments. Operating income also saw a significant rise of 19% to $7.6 billion, reflecting improved operational efficiency and revenue growth. Diluted Earnings Per Share (EPS) improved by 20% to $0.72. The company continues to invest heavily in future growth areas, particularly cloud services and devices. While the PC market experienced a decline, Microsoft's diversified product portfolio and strategic investments in new technologies, such as Windows 8 and the Surface tablet, positioned it for continued market relevance. The company also maintained a strong cash position, with cash, cash equivalents, and short-term investments totaling $74.5 billion.

Key Highlights

• 1Total revenue for the third quarter of fiscal year 2013 increased by 18% to $20.49 billion compared to $17.41 billion in the same period of the prior year.
• 2Operating income grew by 19% to $7.61 billion from $6.37 billion in the prior year's third quarter.
• 3Diluted earnings per share (EPS) rose by 20% to $0.72 from $0.60 in the prior year's third quarter.
• 4The company recognized substantial revenue from the Windows Upgrade Offer ($1.1 billion) and the Video Game Deferral ($380 million) in the current quarter.
• 5Cash, cash equivalents, and short-term investments increased to $74.48 billion as of March 31, 2013, up from $63.04 billion as of June 30, 2012.
• 6Investments in Research and Development (R&D) increased by 5% to $2.64 billion, reflecting ongoing commitment to innovation.
• 7The company continued its share repurchase program, buying back 36 million shares for $1.0 billion during the quarter.

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