Microsoft posted an 11 per cent rise in quarterly net profit today after a strong performance at its database division and shrinking losses from its Xbox 360 video game console.
The world's largest software maker also raised its full-year sales outlook, lifted in part by the upcoming launches of a new Office software suite and Windows Vista, the first major upgrade of its operating system in five years.
Microsoft's stock price, up 25 per cent since June, has already reflected investor optimism over the new product offerings. In after-hours trade, Microsoft shares rose to $28.50 from a close of $28.35 on Nasdaq.
The company now forecasts full-year sales between $50 billion and $50.9 billion - $200 million to $300 million higher than a July estimate - and it cut the high end of its earnings outlook by a penny, now seeing a range of $1.43 to $1.46 per share.
Wall Street analysts have been looking for a full-year profit of $1.44 per share on sales of $50.3 billion.
Microsoft sales rose 11 per cent to $10.8 billion in the quarter. Analysts, on average, had forecast earnings per share of 31 cents on revenue of $10.7 billion, based on Reuters Estimates.
Microsoft posted sales and profit growth at its server and tools business, powered by a 30 per cent year-on-year rise in sales of its database software platform, SQL Server, and solid demand for its Windows server software.
The company also said it had sold
six million Xbox 360 video game consoles since the launch last November, and losses at its entertainment and devices division shrank to $96 million from $173 million a year ago and $414 million the previous quarter.