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DYNAMICS ENDS FY 2010 UP

Microsoft’s Dynamics line saw a 4 percent increase in revenue for the fourth quarter ended June 30, compared to last year’s corresponding period. And with that uptick, the Dynamics business ended fiscal 2010 with flat results, a big improvement from some quarters during the recession. That’s all the detail the company gives about the operations of Microsoft Business Solutions, which is part of the Microsoft Business Division.
However, given the attention given Dynamics CRM at this month’s Worldwide Partner Conference, and the corresponding omission of ERP products during major speeches, the logical thought is that the increase is coming from CRM, which is hardly a surprise. MBD revenue for the quarter was $5.25 billion, up from $4.57 billion a year earlier while operating income rose to $3.28 billion, from $2.71 billion. Most of the revenue increase reflected sales of Office 2010. Consumer revenue was up 51 percent, while business revenue was up 8 percent or $326 million  over a year ago for a variety of reasons, including the 4 percent bump in Dynamics.  If this explanation is what it seems a little math suggests Dynamics was up $81 million and that Dynamics revenue was $205 million for the quarter. Maybe the formula needs to be weighted, but that would annualize at just over $800 million, which doesn’t sound too bad given the economy.  However, assuming that MBS had topped $1 billion and there could have been a 20 percent shrinkage during the recesssion, it seems possible. But math was not my strong suit.
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