Microsoft Corp. on Thursday posted fiscal first-quarter results that -- excluding a $1.2 billion investment charge -- beat Wall Street expectations as the software giant saw solid growth in its line-up of popular business products. Excluding the non-cash charge, which worked out to 20 cents a share and marked the second consecutive quarter Microsoft has taken an investment hit, the company posted a profit of 43 cents a share, above most analysts' expectations.
Microsoft said net profits for its fiscal first quarter ended Sept. 30 were $1.28 billion, or 23 cents a share, compared with $2.2 billion, or 46 cents a share a year earlier, before an accounting adjustment. Including the adjustment, earnings per share were 40 cents a year earlier.
First-quarter revenues were $6.13 billion, up nearly 6 percent from the $5.8 billion a year earlier.
The maker of the Windows operating system was expected to earn between 38 cents and 42 cents a share on revenues of between $5.9 billion and $6.5 billion, according to Wall Street tracking firm Thomson Financial/First Call.
"They did pretty well all things considered. When you look at it, it looked like margin control, that is cost control leading to better margins, and a strong server business," said Scott McAdams, president of brokerage McAdams Wright Ragen.
Looking ahead, Microsoft said it expected revenues to climb to between $7.1 billion and $7.3 billion in the second quarter, up at least 9 percent from $6.5 billion last year, as it rolls out its new Windows XP operating system and Xbox video game console. Bureau Report