[Techtaffy Newsdesk]

Microsoft has announced quarterly revenue of $20.89 billion for the quarter ended Dec. 31, 2011, a 5 per cent increase from the prior year period. Operating income, net income, and diluted earnings per share for the quarter were $7.99 billion, $6.62 billion, and  78 cents per share, compared with $8.17 billion, $6.63 billion and $0.77 per share, respectively, in the prior year period.

Steve Ballmer (Chief executive officer, Microsoft): We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services.

Coming out of the Consumer Electronics Show, we’re seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012.

The Microsoft Business Division reported $6.28 billion in second quarter revenue, a 3 per cent increase from the prior year period, and a 7 per cent increase excluding the prior year recognition of deferred revenue for the Office 2010 technology guarantee program. Nearly 200 million licenses of Office 2010 have been sold in the 18 months since launch. Revenue from Exchange and SharePoint grew by 10 per cent or more over the prior year period, and revenue from Lync and Dynamics CRM grew by more than 30 per cent.

The Server & Tools business posted $4.77 billion in second quarter revenue, an 11per cent increase from the prior year period, reflecting double-digit revenue growth in Windows Server and SQL Server premium editions and more than 20 per cent growth in System Center revenue.

The Windows and Windows Live Division posted revenue of $4.74 billion, a 6 per cent decline from the prior period. Microsoft has sold over 525 million Windows 7 licenses since launch.

The Online Services Division reported revenue of $784 million, a 10 per cent increase from the prior year period. Bing organic US market share grew to 15.1 per cent while Bing-powered US market share, including Yahoo properties, was approximately 27 per cent.

The Entertainment & Devices Division posted revenue of $4.24 billion, an increase of 15 per cent from the prior period. The Xbox 360 installed base now totals approximately 66 million consoles and 18 million Kinect sensors. Xbox LIVE now has 40 million members worldwide, an increase of 33 per cent from the prior year period.

Business Outlook: Microsoft is revising operating expense guidance downward to $28.5 billion to $28.9 billion for the full year ending June 30, 2012.