Microsoft announced its earnings for the third quarter of the year, the period ending September 30, and the big news is that the Surface division is close to becoming the next billion dollar unit for the company.

The Surface line generated 908 million in revenue.

Overall, the technology titan brought in some $23.2 billion in revenue, ending up with an operating income of $5.48 billion. That is a few notches below the $18.5 billion last year for the same time period, which resulted in an income of $6.3 billion.

The dip, Redmond says, is due to the $1.14 billion spent in integration and restructuring expenses.

A few highlights:

  • Windows volume licensing revenue was up 10%.
  • Windows Phone hardware revenue was more than $2.6 billion.
  • Devices and consumer revenue grew 47% to end up at $10.96 billion.
  • There are now more than 7 million Office 365 Home and Personal subscribers.
  • Total Xbox console sales came in at 2.4 million, registering a 102% growth.
  • 9.3 million Lumia units sold, compared to 8.8 million for the same period last year.
  • Commercial revenue was up 10%, and is now at $12.28 billion.
  • SQL Server, System Center and Windows Server registered double-digit growth.

This is Microsoft’s first quarter of the fiscal year, and its shares are up 3% after news of better than expected revenue.

All good signs for the company as it gets ready to show off its next-generation operating system that is currently in development stage, Windows 10.

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