Microsoft first quarter earnings: Xbox sales in strong

Posted Oct 26th 2006 4:44PM by Sarah Gilbert
Filed under: After the Bell, Earnings Reports, Good news, Microsoft (MSFT)

$10.81 billion in revenue. Net income of $3.48 billion, 35 cents a share. Microsoft's quarterly earnings results (it's the company's first fiscal quarter) came in with a bang, a good 11% increase over the year-earlier quarter.

For Microsoft Corporation (NASDAQ:MSFT), this news is sweet indeed. The company has shown strong growth in its Entertainment and Devices division, largely on the back of the Xbox 360 -- 6 million consoles sold!, trumpets the earnings release -- but, as Melly Alazraki mentioned in her preview earlier today, the company's real hopes are set on the upcoming release of Vista. Will it crash our computers? Will it suck? Will it justify the costly investments in R&D?

I'm sure many of these questions will be answered in the analyst conference call, which I'll be liveblogging -- 5:30 Eastern, 2:30 in local Pacific time. The stock was up just a touch to $28.35, and was down again a bit in after-hours to $28.20.

Tags: earnings, earnings report, EarningsReport, first quarter, FirstQuarter, microsoft, msft, msft q1, MsftQ1, q1, q1 2007, Q12007, quarter, quarterly earnings, QuarterlyEarnings, xbox, xbox 360, Xbox360