Tech giants Google and Microsoft see profits rise

 
Michael Bow
Follow Michael
TECH software giants Google and Microsoft both reported quarterly profit rises last night as Microsoft announced chief operating officer Peter Klein was quitting the business.

Klein, who was appointed to the role in November 2009, will step down in June after joining the firm in 2002, Microsoft said, shocking Wall Street. A replacement will be named in the next few weeks and will be an internal hire.

Klein is the latest executive casualty at the computer company, following the departure of Steven Sinofsky, chief of the company’s flagship Windows division, last November.

Pressure from falling PC sales and flatlining growth from Windows, which has been exacerbated by muted pickup of its new Windows 8 operating system, have all hampered the company.

Despite the problems, Microsoft yesterday reported a $6.1bn profit for its third quarter, up from $5.1bn in the same quarter last year. Sales also rose from $17.4bn to $20.5bn.

Most of the boost came from deferred sales income from across its products.

Meanwhile Google reported thumping revenues of almost $14bn for the quarter, up by nearly a third year on year.

Overall net income came in at $3.35bn. This compares well to the $2.89bn posted this time last year but this year’s figure includes revenues and costs associated with its Motorola Mobility mobile phone business, which it acquired in August last year.

The price advertisers are willing to pay Google to advertise – so called cost-per-click – fell four per cent from a year ago, the sixth time in a row it has fallen.

This quarter’s figure is slower than the six per cent slump posted last quarter.

Google is currently pushing ahead with its Glass project, with the spectacles currently being dispatched.

Shares in both companies rose in after hours trading, with Google up about 1.5 per cent and Microsoft up about two per cent after the results.