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Microsoft Reports Rise in Q3 Profits and Earnings; Weak Worldwide PC Sales

Microsoft reported a rise of 6.1 percent in 2011 Q3 profits with continued growth in its Office business software.

The company, which is experiencing lowering Windows sales due to fall in PC shipments, reported that its business software division, which offers the Microsoft Office suite, saw an 8 percent rise in sales to $5.62 billion.

Meanwhile, the company’s entertainment division, which includes the Xbox 360 gaming console, increased its revenue by more than 9 percent to $1.96 billion. Microsoft is struggling with Windows as worldwide PC sales have taken a hit due to a rise in smartphone and tablet devices. The company reported only a 2 percent jump to $4.86 billion in its revenue from the Windows division.

Despite a slump in PC sales, the company reported a rise in revenue and earnings for the third quarter. Microsoft generated a revenue of $17.37 billion, up from $16.19 billion a year ago while the earnings were at $5.74 billion, or 68 cents a share, up from $5.41 billion, or 62 cents a share, a year earlier.

“We saw customer demand across the breadth of our products, resulting in record first-quarter revenue and another quarter of solid [earnings per share] growth," said Peter Klein, chief financial officer at Microsoft, in a statement.

"Our product portfolio is performing well, and we've got an impressive pipeline of products and services that positions us well for future growth," he added.