Microsoft posts Q2 profits of $3.03bn, boosted by new products

July 20, 2007 – Microsoft has reported healthy profits for the second quarter of 2007 of $3.03bn, up 11% from the same period of the previous year.

Demand for new products such as Windows Vista, Microsoft Office 2007, SQL Server, Windows Server, Visual Studio and Xbox 360 games consoles helped drive a 13% increase for total sales in the second quarter of this year, reaching £13.3bn.  Annual profit for 2007-08 as a whole was reported at $14bn, with sales reaching over $51.1bn in the same period.

Microsoft stated that its core businesses were “healthy” and that it plans to continue investing in growth opportunities.  “Surpassing $50bn in annual sales is a testament to the innovation and value that our product groups delivered into the marketplace,” commented Chief Operating Officer Kevin Turner.  In the forthcoming year, Microsoft forecasts total sales to rise to between $56bn and $57bn.

Profits in the past three months were however hindered by costs arising from repairs to Xbox 360 games consoles, with Microsoft recently admitting that it is picking up a bill of over $1bn to cover the cost of providing extended warranties to console owners.