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Forums - Sales Discussion - MS EAD division (incl X350) posts $31mill loss in Q3

Grooski on 23 April 2009

EDIT: X350??? Sweet jebus I need some coffee

 

http://www.microsoft.com/msft/earnings/FY09/earn_rel_q3_09.mspx#Channel

 

 

Three Months Ended
March 31,		 Nine Months Ended
March 31,
2009 2008 2009 2008
Revenue
Client $3,404 $4,033 $11,604 $12,506
Server and Tools 3,467 3,238 10,616 9,381
Online Services Business 721 843 2,357 2,377
Microsoft Business Division 4,505 4,731 14,330 13,663
Entertainment and Devices Division 1,567 1,592 6,564 6,616
Unallocated and other (16) 17 (133) 40
Consolidated $13,648 $14,454 $45,338 $44,583
 
Operating Income (Loss)
Client $2,514 $3,115 $8,689 $9,855
Server and Tools 1,344 1,080 3,978 3,170
Online Services Business (575) (226) (1,521) (737)
Microsoft Business Division 2,877 3,127 9,325 9,010
Entertainment and Devices Division (31) 106 299 668
Corporate-level activity (1,691) (2,912) (4,394) (5,374)
Consolidated $4,438 $4,290 $16,376 $16,592


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ChichiriMuyo on 23 April 2009

Wow, what a quarter. I wonder what did that. EaD did well enough over the last nine months, but things are quickly going to hell for them. They've done especially poor compared to last year. If I were Ballmer I'd be more afraid of the decline in the Client division, though.



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Pristine20 on 23 April 2009

well, 31 million isn't that much. I wonder if this is the fault of the 360 or the zune.



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

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It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler

FinalEvangelion on 23 April 2009

I wonder if sales of Apple laptops are in decline. Apple Office is part of the E&D in their division as well.



"Naturally the common people don't want war: Neither in Russia, nor in England, nor for that matter in Germany. That is understood. But, after all, IT IS THE LEADERS of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is TELL THEM THEY ARE BEING ATTACKED, and denounce the peacemakers for lack of patriotism and exposing the country to danger. IT WORKS THE SAME IN ANY COUNTRY."  --Hermann Goering, leading Nazi party member, at the Nuremberg War Crime Trials 

 

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NJ5 on 23 April 2009
Pristine20 said:
well, 31 million isn't that much. I wonder if this is the fault of the 360 or the zune.

It's not much indeed, but they should be posting profits at this point... I'll try to find if there's any exceptional reason for this.

 



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Egghead on 23 April 2009

Wow this isnt good, just when you thought things finally picked up = (

Hopefully just a single quarter



Egghead on 23 April 2009

Also looking at the revenue, it stayed the same yet profits SHARPLY fell?

AFAIK, last quarter they had a marketing blitz



DirtyP2002 on 23 April 2009

X360 is profitable. R&D for Zune HD is the reason for this. the only thing that seems logical to me.



Imagine not having GamePass on your console...

ramses01 on 23 April 2009

Losses are almost certainly from other products in the E&D division, impact of economy, R&D for Valhalla, XBOX 720, New Zune, reduced average selling price for 360, and 1 time expense for shutting down ensemble as well as other HC reductions (those 1 time charges may be more than the 31 million alone depending on how many people in the latest reduction worked in E&D).



thx1139 on 23 April 2009
FinalEvangelion said:
I wonder if sales of Apple laptops are in decline. Apple Office is part of the E&D in their division as well.

 

 Apple PC sales dropped for the first time in 6 years. This was announced yesterday.

http://money.cnn.com/news/newsfeeds/articles/djf500/200904221708DOWJONESDJONLINE000970_FORTUNE5.htm

What this also shows (not part of the story) is what in the MS E&D division is dragging.  Apple had a real good quarter even with the drop in Mac sales.  We all know why? The iPhone is kicking butt and Windows Mobile is really playing catchup and loosing marketshare.  This is hurting MS 2 ways. 1 they are making big investments in Zune and Windows Mobile to catch up to iPod/iPhone and 2 fewer Windows Mobile SmartPhones are selling reducing revenue.



Its libraries that sell systems not a single game.