Microsoft profits more than expected | WPN World People News

Software giant Microsoft has posted net income of $5.11 billion in the three months to the end of March with profits dipping a bit but still beating market expectations.

With sales rising by 6 per cent to $17.41 billion, the world's largest software firm registered a profit less than $5.23 billion made a year earlier.

Microsoft's Windows is facing a tough competition from the growth of tablet computers such as Apple's iPad and mobile devices using Google's Android system. But the software major is hitting back with the release of Windows 8, an operating system for PCs and mobile devices that will be launched soon.

The new operating system is likely to come in three different types.

For the Intel-compatible machines, the system will be available in two versions - Windows 8 and Windows 8 Pro. For devices like tablets, powered by ARM-designed chips, there will be a Windows RT version.

"We're driving towards exciting launches across the entire company, while delivering strong financial results," said chief executive Steve Ballmer.

"With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead."

Windows sales rose four per cent even as forecasts had suggested a decline of four per cent. Sales at its entertainment division, which includes the Xbox console, fell 16 per cent.

Microsoft stocks jumped 3 per cent to $31.90 a share in after-hours trading in New York as the increase was strongly driven by the announcement of results beating predictions.

Source: United States News.Net