Microsoft profits up 50%

MICROSOFT, the world's leading computer software maker, reported a 50 per cent increase in profits for its fiscal fourth quarter, exceeding industry analysts' expectations.

The Washington based company, which employs 800 at its European operations centre in Sandyford, posted $559 million (£349 million) in net income, or 87 cents a share, compared with $368 million, or 58 cents a share, a year ago. Analysts had predicted quarterly earnings of 85 cents a share, according to the First Call service.

"We completed another consecutive year of growth in both revenues and profits led by the success of the Windows 95 operating system," Chief Financial Officer Mike Brown said.

Revenue for the fiscal fourth quarter ended June 30th rose 39 per cent to $2.26 billion from $1.62 billion. Revenue rose to $8.67 billion from $5.94 billion the previous year. Revenues from sales of Microsoft software included with computers reached $650 million for the quarter and $2.5 billion for the year, a 52 per cent increase over fiscal 1995, Mr Brown said.

Microsoft announced its earnings after the close of trading. The stock fell $1.23 to $119.75 and was the second most actively traded on the Nasdaq. After hours, it slipped 25 cents to $119.50.

"This was a defining year for Microsoft, strategically and operationally," Chief Operating Officer Bob Herbold said.