Google And Microsoft Financial Results 2008

Google Inc. today posted financial results for second quarter 2008. The results were good but below the analyst expectations. Weak U.S. economy may be a reason for this.

Revenue rose 39% to $5.37 billion for the quarter ended June 30, 2008 compared to second quarter of last year 2007 and 3% compared to the first quarter of 2008. Net income for the second quarter was up 35% to $1.25 billion.

Google-owned sites posted revenues of $3.53 billion, account for 66% of total revenues in the second quarter of 2008.

Below is the snippet of official press release from Google.

"Strong international growth as well as sustained traffic increases on Google's web properties propelled us to another strong quarter, despite a more challenging economic environment," said Eric Schmidt, CEO of Google. "As we continue to focus on innovating in our core business of search, ads and apps, we also look forward to enhancing the experience of our users and expanding the reach of our advertisers and partners with new technologies and formats, particularly as our integration of DoubleClick gains momentum and create new opportunities in display advertising and elsewhere."

On the other side, Microsoft, the biggest rival of Google posted good financial results for fouth quarter ended June 30, 2008. The noticeable point in Microsoft result is that Microsoft’s annual revenue reached $60 Billion and achieved fastest annual revenue growth since 1999.

Microsoft revenue rose 18% to $15.84 billion compared to same quarter last year. Earnings per share were increased by 32%. Microsoft posted revenue of $60.42 billion for the fiscal year ended June 30, 2008 up 18% over the last year.

Below is the snippet of official press release from Microsoft.

“Delivering $60 billion in annual revenue is an outstanding accomplishment and a testament to the powerful combination of great technology solutions and strong execution by our partners and global sales and marketing teams,” said Kevin Turner, chief operating officer at Microsoft. “The outlook for fiscal year 2009 is positive given the breadth of our impressive technology portfolio and the expanding collection of online services we are bringing to market.”

Microsoft also posted outlook for the quarter ending September 30, 2008. Microsoft is expecting revenue between $14.7 billion and $14.9 billion and operating income between $5.9 billion and $6.0 billion.

Sources:-
Microsoft’s Annual Revenue Reaches $60 Billion
GOOGLE ANNOUNCES SECOND QUARTER 2008 RESULTS

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