Microsoft's financial report: Microsoft's net revenue in Q3 2013 was $20.489 billion, a year-on-year increase of 17.7%

Early this morning, Microsoft released its Q3 2013 financial report.

Financial report data shows that as of March 31 this year, Microsoft's third quarter net revenue was $20.489 billion, a year-on-year increase of 17.7%; net profit was $6.055 billion, a year-on-year increase of 18.5%. Based on US Generally Accepted Accounting Principles (GAAP), net profit was $6.055 billion, compared with $5.108 billion in the same period last year, a year-on-year increase of 18.5%. Diluted earnings per share in the third quarter of this year were $0.72, compared with $0.60 in the same period last year; based on non-US Generally Accepted Accounting Principles (Non-GAAP), diluted earnings per share in the first quarter of this year were $0.65.

Windows 8 has been questioned since its birth, and Microsoft is facing not only the challenges brought by Windows 8, but also the weakness of the PC industry worldwide. The overall recession has put more pressure on Windows 8. IDC has also criticized the performance of Windows 8 and Surface in depth. Under its influence, many people have expected that the Windows business will decline sharply. However, the reality has not hit the revenue of the Windows department: the financial report shows that the revenue of Microsoft's Windows department in Q3 was 5.703 billion US dollars, compared with 4.633 billion US dollars in the same period last year; the operating profit was 3.459 billion US dollars, compared with 2.979 billion US dollars in the same period last year.

Last week, IDC and Gartner released reports almost simultaneously, saying that global PC shipments in the first quarter showed a double-digit decline, so Microsoft Blue came into being. In addition to working hard on the operating system, Microsoft is also expanding strongly in the hardware market - not long after the launch of Surface, the 7-inch Surface will be released.

Chris Suh, Microsoft's head of investor relations, said that the sales of Surface Pro and Surface RT "may not be high", but have diluted the impact of the decline in PC sales on Microsoft - Microsoft's volume licensing business revenue this year will reach $4 billion. In order to boost Lumia sales in the United States, Nokia launched a contract priced at only $99, and the profit contributed by each phone has decreased. It also has to pay Microsoft a licensing fee of $15 per phone. These revenues have also played a role in some help, but the real difficulties - whether sales can be strong, how to adjust Windows strategy, and whether the 7-inch tablet can sell well, are the key to overcoming the "difficulties".

Currently, neither IDC's report nor Microsoft's financial report provides detailed sales data for Windows tablets.

The following are some detailed data from the financial report:

• Server and Tools Division: Revenue was US$5.039 billion, compared with US$4.531 billion in the same period last year; operating profit was US$1.979 billion, compared with US$1.686 billion in the same period last year.
• Entertainment and Equipment Division: Revenue was US$2.531 billion, compared with US$1.618 billion in the same period last year; operating profit was US$342 million, compared with an operating loss of US$228 million in the same period last year.
• Business division: Revenue was US$6.319 billion, compared with US$5.842 billion in the same period last year; operating profit was US$4.104 billion, compared with US$3.797 billion in the same period last year.
• Network Services Division: Revenue was $832 million, compared with $707 million in the same period last year; operating loss was $262 million, compared with an operating loss of $480 million in the same period last year.
• Fiscal 2013: For fiscal 2013, ending June 30, 2013, the Company's operating expenses are expected to be $30.2-30.5 billion.
• FY 2014: Operating expenses are $31.6-32.2 billion, an increase of 4-6% over the midpoint of FY 2013 after adjustments.

Separately, Microsoft announced that CFO Peter Klein will leave the company at the end of this fiscal year. Klein has been in the CFO position for nearly four years and has been with Microsoft for nearly 11 years. Microsoft will appoint a new CFO in the coming weeks.

Microsoft's stock price fell by $0.03 in regular trading on the Nasdaq on Thursday, closing at $28.79, a drop of 0.12%. In the past 52 weeks, Microsoft's highest stock price was $32.89 and its lowest was $26.26. This year, Microsoft's stock price has risen by 7.8%.