Microsoft has posted its results for the first quarter of its 2014 financial year. Compared to the same quarter last year, revenue is up 16 percent to $18.529 billion, operating income is up 19 percent to $6.334 billion, and earnings per share is also up, rising 17 percent to $0.62.
The way Microsoft is reporting its financials has changed as a result of the reorganization that started earlier this year. Broadly, the results are split into two main parts: a “Devices and Consumer” (D&C) division, which spans all sales that are end user facing, including OEM Windows licensing, retail software, Xbox, Windows Phone (including related patent licensing), and Bing advertising, and a “Commercial” division, which spans volume license sales, server products, and consulting.
This means that under the new reporting system, some products have their revenue split. Office, Office 365, and Windows in particular have both consumer and commercial sales.
D&C is further subdivided three ways: Licensing, which covers software sales, patent agreements, and similar; Hardware, covering Surface, Xbox 360, mice, and third-party games and Xbox Live subscriptions; and Other, covering Windows Store, Xbox Live purchases, advertising, first-partygames, and Office 365 Home Premium.
