Microsoft has reported revenue of $20bn for the second quarter ended December 31 2010, an increase of 5% compared to $19.1bn in the same period of the prior year.
Operating income of $8.2b has been reported in the second quarter, a decline of 4% compared to $8.51bn in the same quarter prior year.
The company has posted a net income of $6.63bn or $0.77 per share in the second quarter of fiscal 2011, an increase of 4% compared to EPS of $0.74 in the same quarter previous fiscal.
The deferred revenue of $1.71bn in the prior year was related to the Windows 7 Upgrade Option programme and sales of Windows 7 before general availability in October 2009.
Without the deferred recognition in the prior year, second-quarter growth rates for revenue and earnings per share were 15% and 28%, respectively.
Microsoft Business Division revenue grew 24% year-over-year and Office 2010 was the fastest-selling consumer version of Office in history, with license sales over 50% ahead of Office 2007 over an equivalent period following launch.
Microsoft chief financial officer Peter Klein said they are enthusiastic about the consumer response to their holiday lineup of products, including the launch of Kinect.
"The 8 million units of Kinect sensors sold in just 60 days far exceeded our expectations," Klein said.
"The pace of business spending, combined with strong consumer demand, led to another quarter of operating margin expansion and solid earnings per share growth."
The company reaffirmed its operating expense guidance of $26.9bn to $27.3bn for the full year ending June 30, 2011.
