Microsoft's profits have fallen 18% while revenues took a 14% dive in the past year, but the software giant is very pleased with its performance.
The company reported a profit of $3.57bn and turnover of $12.92bn in its latest financial quarter ended 30 September. These represented 18% and 14% falls compared to the same period last year.
But Microsoft is confident because of the strong demand for Windows.
"We are very pleased with our performance this quarter and particularly by the strong consumer demand for Windows," said Chris Liddell, chief financial officer at Microsoft.
"The worldwide launches of Windows 7, Exchange Server 2010 and Windows Server 2008 R2 are exciting milestones for Microsoft, our partners, and customers," said Kevin Turner, chief operating officer at Microsoft. "We are pleased by the early positive response we are receiving for these products."