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Microsoft's Amy Hood named CFO as Peter Klein departs
If you'll recall, Microsoft revealed as a footnote to its Q3 2013 earnings report that then-CFO Peter Klein would be stepping down. Today, we're learning a bit more about the transition. Starting right now (well, a few minutes ago), corporate vice president Amy Hood has been moved up to chief financial officer, and while Klein is set to remain onboard through June, Hood is grabbing the title right away. Prior to this role, Hood served as CFO for Microsoft's Business Division, and has been with the company for just over a decade. Asked if she had any immediate plans, she softly nodded and whispered: "I'm bringing Clippy back." Just kidding. But that would've been awesome.
Microsoft posts Q3 2013 earnings, generates $6.06 billion in profit as its CFO steps down
Microsoft's fiscal third quarter earnings (the calendar's first) can reflect the post-holiday lull, and there's a certain truth to that for Q3 2013: the company is reporting $20.49 billion in revenue, lower than what it saw during the holidays, and an equally soft $6.06 billion in profit that dipped below both the previous quarter and the same period last year. That said, any potential slowdown in PC sales isn't clearly manifested here. Possibly owing to the afterglow of the Windows 8 launch, the Windows Division's revenue of $5.7 billion is a sharp increase from the $4.62 billion of a year ago, and it's dampened mostly by having to defer $1.09 billion of that revenue for those who took advantage of Windows 8 upgrade deals. The company also posted healthy year-over-year revenue gains for its Entertainment and Devices Division (to $2.53 billion) and Online Services Division (to $832 million), although the Business group saw a relatively modest 8-point jump to $6.32 billion despite the launches of Office 2013 and Office 365. As part of the results, CFO Peter Klein has given advance notice that he's leaving Microsoft at the end of the company's fiscal year, which ends in June. Neither the company nor Klein has explained the departure, but it's characterized as a friendly one, rather than the abrupt exit we saw the last time around.
Microsoft: tablets affected Q4 earnings, netbooks past their peak
We had a strong (okay, really strong) hunch that the iPad was a contributing factor in Microsoft's waning Windows revenue in Q2, but there's nothing like a little confirmation from Redmond. During the earnings call, Microsoft CFO Peter Klein was asked if tablets were cannibalizing PCs, to which he responded: I think that as Bill [Koefoed] talked a little bit in his comments about netbooks and how netbooks were, they hit their peak last year in Q2, and I think what we've seen is over the course of this year in the consumer space, some of that volume being replaced with newer devices like ultra-portables and tablets. And largely, these are second devices, not primary devices. And that's caused a little bit of a drag on the consumer side. That seems like an admission that people aren't buying Windows 7 tablets, but either way, it's now crystal clear that Microsoft suffered during the back-to-school and holiday season because consumers who may have previously picked up a Windows 7 Starter netbook went for a glossy new iPad (or maybe a Galaxy Tab in the later part of the quarter) or a more powerful ULV ultraportable. Obviously, the shift to tablets is to be expected, but the latter bit about ultraportables is quite telling as well -- it seems to further confirm that people are seeking more power than Intel's Atom, although we don't really see how increased ultraportable sales would be a "drag on the consumer side" of Microsoft's business considering ultraportables run Windows 7 Home Premium or Professional. Sadly, Klein made no mention of Microsoft's future tablet plans, but stated that netbooks were past their prime. We're pretty sure that "next version of Windows" or whatever tablet OS Microsoft is planning couldn't come soon enough for everyone. Or hey, could we suggest reviving the Courier?
Microsoft CFO says 'we'll have much more to say' about WinMo 7 in February
Every indication we've had out of Microsoft is that Windows Mobile 7 is on track for a grand unveiling at Mobile World Congress in Barcelona next month, and indeed, Fox Business has none other than CFO Peter Klein on record saying as much -- the closest thing we've had to a confirmation outside of Robbie Bach's analyst remarks a few weeks back. At the 4:07 mark of the video, Klein says that the company is "heads down" on WinMo 7 and expects to have "much more to say" about the product out in Spain, which would mark the one-year anniversary since the announcement of 6.5 at the same venue. Considering the brutal response that last version endured over the better part of 2009, let's hope they're coming to the table with something much, much more delicious this time around.
