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Microsoft profits rise 51 per cent

Microsoft reported a 51 per cent gain in profit for its first fiscal quarter of 2011, up 51 per cent over Q1 2010.

Microsoft claimed income of $16.20 billion, setting a first-quarter record for the software outfit and a profit of $5.41 billion - up from $3.57 billion a year earlier.

The firm said it has seen year-over-year growth across all business segments. It also said sales of Office were up by over 15 per cent in its first full quarter in market. It made this sound good, but since Office 2010 is a brand new version that has been heavily promoted compared to the elderly version on sale last year, we reckon a 15 per cent increase in sales revenue is pretty shoddy.

The firm said sales of the Xbox 360 games consoles grew 38 per cent year on year and even Bing had grown market share it said.

“We are seeing improved business demand and adoption. Our enterprise agreement rates were strong, reflecting business commitment to Windows 7, Office 2010, and our server and database products,” said Kevin Turner, chief operating officer at Microsoft. “Customer demand and excitement for our cloud and commercial on-line services continue to grow as demonstrated by major new customer wins this quarter for Windows Azure and by the significant customer interest in our recently-announced Office 365 service.”