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Microsoft Earnings Q3 2013

by May 5, 2013






Microsoft earnings Q3 2013

The empire strikes back.
Ready for post-PC era?

Latest Microsoft earnings Q3 2013 charted below.
Our opinions are below charts.
IS Microsoft is a buy, hold, or sell?

Microsoft earnings Q3 2013, Chart showing: sales, cost of sales, gross margin

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Microsoft sales increased YoY.
Gross margin increased as well.

Microsoft earnings Q3 2013, Chart showing: gross margin, OPEX, operating income

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Operating income increased YoY.
It almost matched end-year revenues.

Microsoft earnings Q3 2013, Chart showing: sales, cost of sales, operating expenses, operating income

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A little detail on margins.
Nothing new so far.

Microsoft earnings Q3 2013, Chart showing: gross margin, operating expenses, non-operating expenses, income taxes, exceptional expenses, preferred distributions, net income

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Net income increased QoQ, but not much.
It stayed about the same over last 10 quarters.

Microsoft earnings Q3 2013, Chart showing: detailed revenues and costs

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Expenses stayed about the same, except general and administrative.

Microsoft earnings Q3 2013, Chart showing balance sheet components: current assets, long term assets, current liabilities, long-term liabilities, equity

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Overall balance sheet size and quality increased.
MSFT recorded an all-time record of $76.7 billion in equity.

Microsoft earnings Q3 2013, Chart showing current assets details: cash, investments, accounts receivable, inventory, deferred tax, others

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Current assets include mostly cash and short-term investments.
Inventory increased, signalling some products did not sell well.
Microsoft may increase inventory for future product launches.

Microsoft earnings Q3 2013, Chart showing long term assets: property plant equipment, equity, goodwill, intangibles, others

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Microsoft records a healthy increase of long-term assets.

Microsoft earnings Q3 2013, Chart showing current liabilities: payables, debt, taxes, others

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Accounts payable increased.
Could MSFT prepare some new hardware launches?

Microsoft earnings Q3 2013, Chart showing long term liabilities: debt, taxes, others

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Tax optimization at its peak, as deferred tax and unearned long-term revenues suggest.

Microsoft earnings Q3 2013, Chart showing equity components: stock, earnings, others

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Equity increased to a total of $74.5 billion.

Microsoft earnings Q3 2013, Chart showing cash flows overview: net cash flow, operating, financing, investment cash flow

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Operating cash flow hit a record level.
Chart below gives a little more insight.

Microsoft earnings Q3 2013, Chart showing operating cash flows details: net income, adjustments, accounts payable, accounts receivable, inventory, others

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Details on operating cash flow above.

Microsoft earnings Q3 2013, Chart showing non cash details of operating cash flows

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No impairments and write-offs for Microsoft here.
Record operating cash flow would have provided a good excuse.

Microsoft earnings Q3 2013, Chart showing financing cash flows details: debt, stock, dividend, others

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More than $2.5 billion were paid to investors.
Stock repurchase program decreased in size.

Microsoft earnings Q3 2013, Chart showing investment cash flows details: property plant and equipment, investments, securities

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So far, Microsoft made no major acquisition yet.

Bottom line for Microsoft Earnings Q3 2013:
Steady and slow advance in Microsoft sales and profits.

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