Microsoft presented fourth quarter revenues of $12.54 billion, up 6 percent compared to the same period a year ago, with net earnings of $2.63 billion. The net profit is down 28 percent compared to Q4 2005, mostly because of the delay of Windows Vista and the decision to hand out coupons for Windows Vista:
Microsoft said that Xbox 360, Microsoft SQL Server 2005, Visual Studio 2005 and Microsoft Dynamics CRM 3.0, which were released in Q4 2005 contributed more than $1.0 billion in revenue growth to the bottom line of the quarter result.
Especially the Xbox business has taken off for Microsoft with revenues of the Entertainment and Devices division climbing from $1.7 billion in Q4 2005 to $3.0 billion in Q4 2006. However, Microsoft was not able to reduce the loss of this segment, which was $286 million in Q4 2005 and $289 million in Q4 2006.
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