23 April, 2010

Microsoft 3Q net income up 35 per cent

For the January-March fiscal third quarter, Microsoft earned $4 billion, or 45 cents per share. That's higher than the 42 cents per share forecast by analysts surveyed by Thomson Reuters. It's up from $3 billion, or 33 cents per share, a year ago. Revenue rose 6 percent to $14.5 billion, slightly more than the $14.4 billion analysts were expecting. Microsoft had $13.6 billion in revenue in the same quarter a year ago.

Microsoft is waiting to report $305 million in Office revenue until after the upcoming Office 2010 launches in the current quarter. Microsoft's online business, which includes Web search and online advertising, deepened its loss to $713 million in the quarter from $411 million a year ago.Microsoft has started making payments to Yahoo Inc. as part of a Web search deal that the two forged last year. This quarter, the payments amounted to $78 million. But Microsoft is not operating the technology behind Yahoo's search right away, so it isn't benefiting from the partnership yet.