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Microsoft Exceeds Wall Street Predictions With Better Than Expected Revenues

In what can be seen as a positive sign for Microsoft, the software giant has beaten Wall Street expectations by posting a net profit of $3.57 billion in its first quarter.

However its profits were 18 percent lower than those it achieved in the first quarter of 2008 and even its total revenue figures has seen a significant decline of 14 percent in the same relative period.

The revenue figures for Microsoft stood at $12.92 billion which is significantly higher that what many analysts have predicted and the company is hopeful of drastically improving its performance in the coming quarter with the launch of Windows 7.

Expressing his view on the performance of the company Chris Liddell, the CFO of Microsoft mentioned "We are very pleased with our performance this quarter and particularly by the strong consumer demand for Windows. We also maintained our cost discipline, which allowed us to drive strong earnings performance despite continued tough overall economic conditions."

A lot of how Microsoft will perform in near future depends on the sale of its flagship product Windows 7 and going by initial reception it is receiving amongst computer users; things do look quite promising for the software giant.

Our Comments

Decrease in profits while revenues increase means that margins are under heavy pressure. Fortunately, the launch of Windows 7 worldwide, coupled with Windows Server 2008 and the soon to come Office 2010 means that the next few months are probably going to be significantly better.

Related Links

Microsoft pins hopes on Windows 7 as profits fall

(Forbes)

Microsoft quarterly results better than expected

(dailytech.com)

Microsoft net profit down 18%, beats expectations

(AFP)

Microsoft Q1 sales pays price for Win 7 launch

(The Register)

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.