Microsoft Q3 revenues up 6%

RESULTS CORNER

Microsoft Corp, the world’s largest software maker, reported a third-quarter profit that topped estimates on better- than-expected sales of Windows and Office software for businesses. Its revenues were up by six per cent to $17.41 billion for the quarter ended March 30.

Net income slipped to $5.11 billion, or 60 cents a share, from $5.23 billion, or 61 cents, a year earlier, Redmond, Washington-based Microsoft said in a statement.

Analysts had predicted an average 57 cents in profit, according to estimates compiled by Bloomberg. Sales rose six per cent to $17.4 billion, beating the $17.2 billion average projection. Microsoft, whose Windows business had missed analyst estimates in four of the prior five quarters, surprised investors with better-than-expected results as corporate demand for Windows computers made up for tepid interest from consumers opting for tablet machines. The company plans later this year to release Windows 8, the newest version of its operating system, to help it win back consumers and narrow Apple Inc’s lead in the tablet market.

Microsoft gave its first look at operating-cost projections for the fiscal year that starts July 1, saying expenses will be $30.3 billion to $30.9 billion.

That’s a gain of as much as eight per cent, higher than this year’s increase, as the company plans for costs related to product debuts in Windows and Office, Microsoft Chief Financial Officer Peter Klein said in an interview.