Microsoft has reported an increase in earnings and revenue for its first fiscal quarter, citing strong demand from consumers, which helped offset a slow recovery in corporate IT spending.
Net income for the quarter ending 30 September came to $2.61bn, which includes equity compensation expenses of $680m. For the same quarter the previous year, Microsoft reported net income of $2.04bn, including charges of $993m .
Revenue amounted to $8.22bn, up 6% year on year from $7.75bn, beating the analyst consensus estimate of $8.08bn. Microsoft's own revenue guidance was for between $7.9b and $8.1bn.
Microsoft profited from double-digit growth in PC shipments in the past quarter. In July the company predicted only mid-single digit growth in PC shipments for its full 2004 financial year.
In response to the sales increase, Microsoft has adjusted its outlook slightly. For its financial year ending 30 June 2004, the software maker now expects revenue between $34.8bn and $35.3bn, up from its July estimate of revenue between $34.2bn and $34.9bn.
For the quarter ending 31 December Microsoft expects revenue of between $9.7bn and $9.8bn.
Joris Evers writes for IDG News Service