Microsoft Q1 2013 Earnings Better than Expected, Up by 17 Percent

Microsoft reported that its revenue for this year’s first quarter amounted to $5.2 billion, 17 percent higher than the same period in 2012.

The Washington-based software giant said in earnings release that its net income during the first quarter jumped 17 percent to $5.2 billion, or 62 cents per share. Microsoft’s sales also came in better than expected wherein its earnings increased by 16 percent over the year to $18.5 billion.

Ballmer, CEO of Microsoft, said in a statement, "Our devices and services transformation is progressing.” He revealed also that a “wide range” of new products will be released in the next quarter.

Microsoft has launched new products this quarter like an update to Windows 8 and acquisition of the struggling Finnish giant Nokia’s mobile phone unit.

Amy Hood, CFO of Microsoft, sounded very delighted during the post-earnings conference call with analysts and some members of the press.

She told BBC, the company’s customers are pleased with “the innovation and roadmap that we've shown.” She also said, "I do feel quite good about our competitive position."

Meanwhile, as a number of Microsoft’s businesses get positive feedback in this quarter, Windows sales dropped by seven percent.

The Windows 8 operating system, which is wholly revamped, was unsuccessful in enticing consumers. That seems a big frustration for the company.

Microsoft said that even its Surface tablet sales took off after Microsoft slashed prices. The company reported that earnings from Surface rose to $400 million worth of tablets in the quarter.

Nonetheless, Microsoft, as a whole, did very well in this quarter.

Aside from the revenue announcement during the conference call early Thursday, many also awaited for the revelation of Steve Ballmer’s successor. Sad to say, the company didn’t say anything about it. Even Alan Mullaly, chief executive of Ford Motors, did not say anything when asked about hearsays that he was being considered for the seat.