today posted its earnings for the second quarter of its fiscal year 2002, which ended on December 31, 2001. The company posted a smaller quarterly profit than expected, but revenues are up.
The company said its revenue was up 18 percent year-over-year, $7.74 billion for the quarter compared to $6.55 billion for the same period the year before. The company noted operating income of $2.84 billion for the quarter, with net income around $2.28 billion. Microsoft explained that it anticipates spending $660 million in charges related to consumer class action lawsuits, which resulted in the low net income results.
Microsoft CFO John Connors said that the company saw “record revenue” on new product launches in the second quarter, including its new Windows XP operating system, the Xbox video game console system, and MSN 7. Connors warned that Microsoft is concerned about global economic health, however.
Microsoft noted that over 17 million copies of Windows XP have been sold since the new operating system’s introduction on October 25. That number combines both copies that have been sold in retail and those that have been installed on new computers that were purchased during the same period. The company said it’s the most successful Windows launch ever.
Calling Windows XP the best operating system Microsoft has ever created, Microsoft group vice president of platforms Jim Allchin said that Windows XP has been enthusiastically received since its introduction.
“Windows XP drove great results for the Windows division this quarter. Client operating system sales were up 24 percent from last year,” said Allchin.
1.5 million Xbox consoles were sold during the quarter, as well.
Microsoft offered guidance for the quarter ending March 31, 2002. The company expects revenue to be in the $7.3 to $7.4 billion mark. Operating income will be between $2.8 and $2.9 billion, with diluted earnings per share expected around $0.50 to $0.51. For the full fiscal year, Microsoft expects to report revenue in the $28.8 to $29.1 billion range; operating income around $11.5 to $11.8 billion, with diluted earnings per share of $1.57 to $1.60.