Microsoft net profit flat as sales rise 5% in Q2

Microsoft reported revenues up 5 percent year-on-year to USD 20.89 billion for the fiscal second quarter to end December, as the operating profit fell slightly to USD 7.99 billion from 8.17 billion, and the net profit fell flat at USD 6.62 billion from 6.63 billion the year earlier. Earnings per share reached USD 0.78 from 0.77. Microsoft noted that results in 2010 included deferred revenue of USD 224 million. CEO Steve Ballmer said the company was preparing for a launch year set to accelerate many key products and services. The Microsoft Business Division reported sales up 3 percent to USD 6.28 billion while sales at Exchange and SharePoint grew by 10 percent and at Lync and Dynamics CRM advanced by more than 30 percent. The Server & Tools business posted USD 4.77 billion in revenue, up 11 percent year-on-year. The Windows and Windows Live Division saw revenue fall 6 percent meanwhile to USD 4.74 billion. At the Online Services Division, revenue lifted 10 percent to USD 784 million. Bing organic US market share grew to 15.1 percent while Bing-powered US market share, including Yahoo! properties, was 27 percent. The Entertainment & Devices Division saw revenue climb 15 percent to USD 4.24 billion. The Xbox 360 installed base now totals 66 million consoles and 18 million Kinect sensors. Xbox LIVE now has 40 million members worldwide, an increase of 33 percent% from the prior year period. The company downgraded its operating expense guidance for the full year to end June, to USD 28.5 billion from 28.9 billion.