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DYNAMICS REVENUE UP 4 PERCENT

Revenue for Microsoft's Dynamics software line rose 4 percent for the first quarter ended June 30. The statistic was the only information that is normally provided in Microsoft’s SEC filings. Otherwise, Dynamics results are buried within the Microsoft Business Division. The largest contributor to the division's results are the Office applications, which increased business revenue by 11 percent and consumer revenue by 26 percent.

MBD revenue for the quarter was $5.13 billion, a 14-percent increase from $4.5 billion in last year’s corresponding period. The Dynamics results were a significant improvement over fiscal 2010 in which revenue was flat. Reports from some top resellers have been they are doing very well. However, one indicated that Microsoft didn't make its numbers during the quarter, and I wasn't able to follow up and ask if that was overall or just one region. He also said the company was likely to come up short during the December quarter. Another complained that despite his organization's strong results, he was unhappy that Microsoft had pulled marketing dollars from Dynamics and was putting its effort into xBox. There has been a negative tone to the view of Microsoft Business Solutions creeping into the channel that I haven't seen before.
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