Microsoft profits up 10% over last quarter

Microsoft has announced revenues of $7.25 billion for the quarter ended in June, a 10 per cent increase over the $6

Microsoft has announced revenues of $7.25 billion for the quarter ended in June, a 10 per cent increase over the $6.58 billion for the same quarter last year.

Operating income for the fourth quarter was $2.87 billion, compared to $2.75 billion in the same period last year, while net income and diluted earnings per share for the fourth quarter of 2002 were $1.53 billion and $0.28, which included an after-tax charge for investment impairments of $806 million or $0.15.

For the same period last year, net income and diluted earnings per share were $65 million and $0.01, including after-tax charges for investment impairments of $2.63 billion or $0.47.

The company also announced revenue of $28.37 billion for the full fiscal year ended in June, a 12 per cent increase over the $25.30 billion reported last year. Operating income was $11.91 billion, compared to $11.72 billion in the same period last year.

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"Robust customer demand for Windows XP and other desktop software enabled us to deliver strong operating results this quarter, in spite of continued uncertainty in the technology markets," said Mr John Connors, chief financial officer at Microsoft.

Desktop software revenue was $4.97 billion, up 9 per cent in the June quarter. Demand was particularly robust for the Professional versions of Windows, according to leading revenue to outgrow the personal computer systems market.