Growing the Surface Family: Surface Windows 8 Pro Availability Confirmed

Ever since we launched Surface Windows RT late last year, it’s been exciting to see the ongoing customer response to this amazing device. We are also pumped about all the anticipation and excitement in regards to Surface Windows 8 Pro. There have been a tremendous amount of questions to date, and today, I am pleased that we are formally announcing the date of availability. Surface Windows 8 Pro will be available in the U.S. and Canada starting on Feb. 9 through all Microsoft retail stores, microsoftstore.com and at Staples and Best Buy in the U.S. as well as from a number of locations in Canada. Not only has it been fun watching the anticipation, it has been great working with such an amazing team to bring these products to life.

Powered by an Intel Core i5 processor, Surface Windows 8 Pro provides the power and performance of a laptop in a tablet package and will run all Windows 8 applications as well as current Windows 7 desktop applications. Last month, we announced Surface Windows 8 Pro pricing starting at $899 and that it will be available in 64 GB and 128 GB models. A Surface Pen is included and makes for an amazing experience for writers, graphic designers or even engineers, and with Palm Block technology writing and drawing is fun for everyone on Surface Windows 8 Pro.

Surface_031_typecover

Surface Windows 8 Pro is an exciting new addition to the Surface family, bringing a powerful, work-ready device that is just at home in the boardroom as it is the family room. Whether you’re a road warrior, a student or someone who just wants a flexible and powerful Intel PC, the Surface Windows 8 Pro will deliver. It’s the perfect complement to the Surface Windows RT and delivers hours and hours of entertainment with plenty of power and productivity to get your work done as well.

Market availability expanding

The response to Surface Windows RT has been exciting to see since its launch. In the coming weeks, we are more than doubling the markets in which Surface Windows RT is available. Surface Windows RT is already available for purchase in Australia, Canada, China, France, Germany, Hong Kong, the United Kingdom, and the United States and this announcement will expand its availability to 13 additional markets worldwide. New markets in the coming weeks include:

· Austria, Belgium, Denmark, Finland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden and Switzerland.

Introducing: New members of the Surface family

One of the benefits of Surface is that it becomes the ideal personal computer allowing customers to use it as a laptop or tablet. They have the ability to truly make it theirs and bring their personality to life through the Touch Cover. Starting in February, customers can click in three new Touch Cover Limited Editions. Priced at $129.99 in the US, Touch Cover Limited Edition features unique laser-etched designs in three distinctive colors: red, magenta and cyan.

Surface_095

Each design is different and allows customers additional personalization options beyond the various colors of Touch Cover that are already available. These limited edition Touch Covers will be available for purchase on Feb. 9 in the 8 markets in which Surface is currently sold, with additional markets to follow in the coming weeks. In addition to the limited-edition Touch Covers, Microsoft is releasing a special Surface Edition of the Wedge Touch Mouse. The Wedge Touch Mouse Surface Edition is specifically designed to complement the Surface experience in all its forms, providing four-way Touch scrolling and easy navigation at one’s fingertips. It also has a similar finish to Surface’s VaporMg casing, the combination of material selection and manufacturing process that is used to create Surface. The Wedge Touch Mouse Surface Edition will be available on Feb. 9 for estimated retail price of $69.95 in all markets in which Surface Windows RT is currently sold.

Surface_037

We’ve taken a lot of customer and retailer feedback into consideration and are happy to announce the 64 GB Surface Windows RT standalone version, not bundled with a black Touch Cover. This allows customers to personalize their Surface Window RT 64 GB with the Touch Cover or Type Cover of their choice. Starting Feb. 9, customers can purchase a 64 GB Surface Windows RT as a standalone unit in all markets in which Surface Windows RT is currently sold.

We’re extremely excited to share more about Surface Windows 8 Pro and the growing Surface family of products. We’ll have additional information as we get closer to Feb. 9. Until then, for more details on Surface Windows 8 Pro and Surface Windows RT, you can visit Surface.com, find us on Surface on Facebook. Or follow Surface and me on Twitter for additional updates.

Microsoft Reports Record Revenue of $21.5 Billion in Second Quarter

Microsoft Corp. today announced quarterly revenue of $21.46 billion for the quarter ended December 31, 2012. Operating income, net income, and diluted earnings per share for the quarter were $7.77 billion, $6.38 billion, and $0.76 per share.

These financial results reflect the net deferral of revenue for the Windows Upgrade Offer, Office Upgrade Offer and Pre-sales, and the Entertainment and Devices Division Video Game Deferral, partially offset by the recognition of previously deferred revenue for Windows 8 Pre-sales. The following table reconciles these financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. We have provided this non-GAAP financial information to aid investors in better understanding the company’s performance.
Download: Web

“Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers,” said Steve Ballmer, chief executive officer at Microsoft. “With new Windows devices, including Surface Pro, and the new Office on the horizon, we’ll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need.”

The Windows Division posted revenue of $5.88 billion, a 24% increase from the prior year period. Adjusting for the net deferral of revenue for the Windows Upgrade Offer and the recognition of the previously deferred revenue from Windows 8 Pre-sales, Windows Division non-GAAP revenue increased 11% for the second quarter. Microsoft has sold over 60 million Windows 8 licenses to date.

"We saw strong growth in our enterprise business driven by multi-year commitments to the Microsoft platform, which positions us well for long-term growth,” said Peter Klein, chief financial officer at Microsoft. “Multi-year licensing revenue grew double-digits across Windows, Server & Tools, and the Microsoft Business Division.”

The Server & Tools business reported $5.19 billion of revenue, a 9% increase from the prior year period, driven by double-digit percentage revenue growth in SQL Server and System Center.

“We see strong momentum in our enterprise business. With the launch of SQL Server 2012 and Windows Server 2012, we continue to see healthy growth in our data platform and infrastructure businesses and win share from our competitors,” said Kevin Turner, chief operating officer at Microsoft. “With the coming launch of the new Office, we will provide a cloud-enabled suite of products that will deliver unparalleled productivity and flexibility.”

The Microsoft Business Division posted $5.69 billion of revenue, a 10% decrease from the prior year period. Adjusting for the impact of the Office Upgrade Offer and Pre-sales, Microsoft Business Division non-GAAP revenue increased 3% for the second quarter. Revenue from Microsoft’s productivity server offerings – collectively including Lync, SharePoint, and Exchange – continued double-digit percentage growth.

The Online Services Division reported revenue of $869 million, an 11% increase from the prior year period. Online advertising revenue grew 15% driven by an increase in revenue per search.

The Entertainment and Devices Division posted revenue of $3.77 billion, a decrease of 11% from the prior year period. Adjusting for the Video Game Deferral, the division’s non-GAAP revenue decreased 2% for the second quarter. Xbox continues to be the top-selling console in the United States. During the quarter, Microsoft launched Windows Phone 8 with a broad array of carriers and devices.

Business Outlook

Microsoft reaffirms fiscal year 2013 operating expense guidance of $30.3 billion to $30.9 billion.

Webcast Details

Peter Klein, chief financial officer, Frank Brod, chief accounting officer, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. PST (5:30 p.m. EST) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/investor/. The webcast will be available for replay through the close of business on Jan. 24, 2014.

Adjusted Financial Results and Non-GAAP Measures

For second quarter fiscal year 2013 GAAP revenue, operating income, and earnings per share growth included the net deferral of revenue for the Windows Upgrade Offer, the Office Upgrade Offer and Pre-sales, and the Entertainment and Devices Division Video Game Deferral, and the recognition of previously deferred revenue for Windows 8 Pre-sales. These items are defined in our Form 10-Q for the quarterly period ended December 31, 2012. In addition to these financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these measures without the impact of these items gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance. These non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.