Microsoft entertainment division posts $426 million gain
The company shipped 1.3 million Xbox 360 units during Q4, with FY 2008 revenue up 34% to $8.14 billion
Microsoft released its Q4 and FY 2008 earnings reports today, with the Entertainment and Devices Division reporting a USD 426 million profit over the year.
The division reported Q4 revenue of USD 1.575 billion - up 37 per cent from 2007 - but an overall operating loss of USD 188 million. For the same period of the prior year, the division reported a USD 1.223 billion operating loss.
Fiscal year 2008 revenue was up 34 per cent to USD 8.14 billion.
Microsoft attributed the revenue increase primarily to Xbox 360 platform sales. It shipped 1.3 million consoles during Q4, compared to 700,000 in Q4 of fiscal 2007.
The company also noted that the cost of revenue decreased 49 per cent due to the USD 1.1 billion charge it took in Q4 2007 related to the expansion of warranty coverage.
Overall, Microsoft reported USD 15.84 billion Q4 revenue, with operating income of USD 5.68 billion and diluted EPS of USD 0.46 - growth of 42 per cent and 48 per cent, respectively, over the same period of the prior year.
For the fiscal year, Microsoft announced revenue of USD 60.42 billion, an 18 per cent increase over the prior year and the fastest annual revenue growth since 1999 according to the company.
Operating income and diluted earnings per share for the year were USD 22.49 billion and USD 1.87, respectively. Microsoft noted that these growth rates were impacted by the USD 1.1 billion Q4 2007 charge related to the Xbox 360 warranty expansion.
For Q1, Microsoft expects revenue in the range of USD 14.7 - 14.9 billion, operating income in the range of USD 5.9 - 6 billion and diluted earnings per share of USD 0.47 or 0.48.
For FY 2009, Microsoft's management offered guidance of revenue in the range of USD 67.3 - 68.1 billion, operating income in the range of USD 26.3 - 26.9 billion and diluted EPS in the range of USD 2.12 - 2.18.
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