Microsoft 1Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“let me say a few words about the CFO transition we announced today…it’s a good time to refocus my priorities to spend time with family”

“revenue and earnings per share growth of 8%”

“With Windows 8, we are setting a new, accelerated pace for updates and innovations, as we focus on making the Windows experience richer and better…we will release the next version of Windows, codenamed Windows Blue, which further advances the vision of Windows 8 as well as responds to customer feedback.”

“As well, Intel’s fourth generation core processor will help enable new devices that combine performance benefits with power savings. Later in the year, we expect to see devices based on Intel’s upcoming Bay Trail Atom processor, which promises to deliver tablets and hybrid PCs with extended battery life at competitive prices.”

“In the Windows division, revenue was flat this quarter. Within that, OEM revenue performance was in line with the underlying x86 PC market, which continues to be challenged as the PC market evolves beyond the traditional PC to touch and mobile devices.”

“this quarter we saw continued progress in the transition of Windows XP to Windows 7, and now two-thirds of enterprise desktops are running Windows 7”

“we’re very encouraged by both Haswell and some of the Atom processors to really improve the overall user experience that Windows 8 delivers.”

“I did mention the fact that we believe [PC] inventories were drawn down. We do think they’re at normal levels at this point, though”

[in the enterprise] “the performance that you get relative to the price is really a compelling value proposition, and that’s what’s been enabling us to take share. The same on virtualization as well.”

“I think over the longer term, what’s more interesting is the long term evolution we’re seeing in the device market, which I think is actually going to be more of a driver than any temporal upgrade cycle. Innovation is happening faster, people are getting new experiences and new form factors. I think that’s what Windows 8 was designed to take advantage of”