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Q1 DYNAMICS REVS UP 6 PERCENT

Peter Klein, MicrosoftDynamics revenue for Microsoft's first quarter ended September 30 was up 6 percent over last year's corresponding period, the company said this week. While that is not sizzling, it was better than the Microsoft Business Division, the parent organization that exists only as a reporting unit and not as an operational organization. And as usual Dynamics CRM was hotter with a 30-percent increase in revenue.

Meanwhile, MBD revenue decreased by $189 million, down 2 percent from a year earlier because of the deferral of Office revenue and a soft PC market. The deferral is from an upgrade offer and pre-sales of Windows 8. Sales in the division were somewhat offset by increased sales of Office 2010. What Microsoft termed business revenue within the division was up 3 percent, so Dynamics was the best performer, although the company does not reveal the dollar amount of Dynamics sales. And Dynamics revenue growth was certainly better than that for the company which was flat at $17.4 billion for the first quarter. Microsoft was hurt by a decline in revenue from Europe described as being in "mid single digits." Operating income of $6.7 billion was down 7 percent from last year's first quarter. Part of the decline in the PC market was attributed to inventory being drawn down as the market prepares for the launch of Windows 8 next week. In fact, next week ought to bring a lot of hoopla as iPhone 8, Surface and Windows Stores are also being introduced on October 26 with CFO Peter Klein describing the combined moves as "the largest launch wave in our history" with most major products being refreshed over 12 months.
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