Microsoft confirms record revenue as Windows slips

Microsoft confirmed record Q4 revenue of $17.37 billion for the quarter ending June 30, 2011 – an 8% increase from the same period last year.

For the fiscal year, Redmond reported revenue of $69.94 billion, a 12% increase from the prior year.

“Throughout fiscal 2011, we delivered to market a strong lineup of products and services which translated into double-digit revenue growth, and operating margin expansion,” said Microsoft CFO Peter Klein.

“Our platform and cloud investments position us for long-term growth.”

According to Klein, growth was driven by a number of divisions within Redmond, including Business (via MS Office), Server & Tools and Online Services.

Meanwhile, Entertainment & Devices grew by an impressive 30% for the fourth quarter and 45% for the full year, primarily due to the ongoing momentum of the Xbox console, Kinect and Live.

Indeed, the Xbox 360 was ranked the top-selling game console in the U.S. over the past twelve months.

Although solid growth was reported across most of the company, Windows and Windows Live Division revenue declined 1% for the fourth quarter as revenue for the full year decreased 2%.

Nevertheless, excluding the impact of the prior year Windows 7 launch and revenue deferral, Microsoft estimates full-year revenue growth remained in line with PC market growth of 2% to 4%. 

It should be noted that Redmond recently showcased a preview of its long-awaited Windows 8, which features a new user interface, fresh app experience and support for RISC-based ARM chips.