Microsoft's quarterly earnings rise by 75%

Microsoft's quarterly earnings soared 75 per cent over the year-earlier period, the software giant said last night, as strong personal computer sales helped it blow past even the highest Wall Street estimates. Microsoft employs 1,200 in the Republic

Microsoft said it earned $1.98 billion, (#1.23 billion) or 73 cents per diluted share, in its fiscal second quarter, up from $1.13 billion, or 42 cents, a year earlier. Revenues rose 38 per cent to $4.94 billion from $3.59 billion.

On average Wall Street analysts estimated Microsoft would earn 59 cents a share in the quarter ended December 31st, with the most optimistic estimating the company would come in with earnings of 61 cents, according to First Call, an investment research firm.

In after-hours trading, Microsoft's stock jumped nearly $8 to $163.25 a share, traders said. The results were released after the close of Nasdaq trading, where Microsoft rose $5.875 to close at a record $155.625 in a very active session.

Microsoft Chief Financial Officer Mr Greg Maffei credited strong growth in personal computer shipments with fuelling broad demand for the company's core products, including the high-end Windows NT family of products and the Office suite of basic business applications.

He also said sales "spiked due in part to demand caused by year 2000 concerns" about making certain older computer systems are able to read dates correctly after 1999.