Microsoft unveils better than expected quarterly results

Microsoft fared better than analysts anticipated in its latest quarter, boosted by a stunning rise in sales of its Windows operating system for private computers

The fiscal third-quarter performance announced on Thursday comes as investors stay up for the discharge of Windows 8 later this year. The subsequent version marks one of the most radical overhaul of the commonly-used operating system in decades.

Microsoft earned $US5.1 billion, or 60 cents per share, in the course of the three months ending in March. That was down from net income of $5.2 billion, or 61 cents per share, a year ago.

Revenue rose 6 per cent from last year to $17.4 billion

Analysts had anticipated earnings of 58 cents per share on revenue of $17.2 billion, in step with a FactSet survey.

"We're driving toward exciting launches around the entire company, while delivering strong financial results," said Microsoft CEO Steve Ballmer.

One of the quarter's bright spots came in Microsoft's Windows division, which has faltered during the past year as more people bought Apple's iPad and other tablet computers in place of desktop and notebook computers.

Analysts even have assumed that many businesses and consumers excited about buying a computer would hold off until Windows 8 hits the market within the fall.

That did not become the case in the course of the three months ending in March as revenue within the Windows division edged up by 4 per cent from last year to $4.6 billion.

Microsoft attributed the gain to an uptick in businesses who bought licenses for Windows 7. It marked only the second one time previously six quarters that Microsoft has registered a year-over-year gain inside the Windows division.

At the flip side, Microsoft's entertainment division sagged prior to now quarter as demand weakened for its Xbox game console. The division's revenue fell 16 per cent from last year to $1.6 billion.

Microsoft's long-suffering online division, which has struggled for years to compete against internet search leader Google, managed to narrow its losses inside the latest quarter. The division's operating lack of $479 million when compared with a lack of $776 million whilst last year.

Microsoft shares added 90 cents, or nearly 3 per cent, to $31.91 in Thursday's extended trading.

-AP