Microsoft Mobile and Embedded Devices Revenue Up More Than 50%

[Kris Kumar]

<div class='os_post_top_link'><a href='http://www.microsoft.com/presspass/press/2005/0ct05/10-27Q1EarnPR.mspx' target='_blank'>http://www.microsoft.com/presspass/press/2005/0ct05/10-27Q1EarnPR.mspx</a><br /><br /></div><i>"Microsoft Corp. today announced revenue of $9.74 billion for the quarter ended Sept. 30, 2005, a 6% increase over revenue of $9.19 billion for the same period in the previous year. Operating income experienced 16% year-over-year growth for the first quarter to $4.05 billion, including a $361 million charge for the settlement with RealNetworks Inc. Operating income for the first quarter of the previous year of $3.49 billion included a charge of $536 million related to the Novell Inc. settlement. ... Mobile and Embedded Devices revenue was up more than 50% due to continued adoption of Windows Mobile® software. Major product announcements from both Motorola Inc. and Palm Inc. highlighted the continued customer momentum of Windows Mobile 5.0."</i><br /><br /> <img src="http://www.smartphonethoughts.com/images/Kris-Oct05-MSFTQ106.jpg" alt="User submitted image" title="User submitted image"/> <br /><br />Microsoft is reporting double-digit growth in operating income and more growth is expected from all the exciting product launches in the coming months. The earnings release can viewed over <a href="http://www.microsoft.com/msft/earnings/FY06/earn_rel_q1_06.mspx">here.</a> The above image is a screen shot from the PowerPoint presentation that can be viewed over <a href="http://www.microsoft.com/msft/download/FY06/Q1FY06%20ER.ppt">here</a> and you will notice that it highlights the Motorola Q announcement, instead of highlighting the success of HTC devices. :-( This report is clearly aimed at the Wall Street investors who are familiar with the brand names Palm and Motorola. ;-)

[Jerry Raia]

Yeah but just wait until the Q hits the streets. If it works as well as Moto's other "Smartphones" they can just take that little thing off the bottom of the "Q" and make it a big fat 0

[Mike Temporale]

wow! 41% Y over Y - that's really impressive. I'm guessing these numbers are more available now due to the re-org. We never used to see the exact breakdown for WM. I'm liking what I see. :)

And the fact that they mentioned the Moto Q is just fluff for investors. When the device ships, it won't impact Microsofts stock, only Moto. This is just to show all the new major announcements and to show growth.

[Kris Kumar]

http://www.smartphonethoughts.com/images/Kris-Oct05-MSFTEarnings2.jpg

I should have added this chart to the main post. This one shows the earning break up by division. Also the profit and loss. Notice that division lost only 2 million dollars compared to 29 million in the last quarter. I am sure that in the next quarter they will swing into black. :-)