Friday, October 21, 2011

Microsoft profit meets Street view, Windows weak (Reuters)

(Reuters) ? Microsoft Corp said fiscal first-quarter profit rose 6 percent, meeting Wall Street's modest expectations, helped by strong sales of its popular Office applications package, but hindered by only slight gains from its flagship Windows operating system.

The world's biggest software company reported net profit of $5.74 billion, or 68 cents per share, up from $5.41 billion, or 62 cents per share, a year ago.

That met Wall Street's average estimate, according to Thomson Reuters I/B/E/S. It is the first time in 10 quarters that Microsoft has not exceeded the average estimate.

Overall sales rose 7 percent to $17.37 billion, helped by its Office product, which remains popular with businesses even in the difficult global economy.

Windows sales edged up only 2 percent, in line with limp personal computer sales last quarter.

Microsoft's shares, which have traded in the $20-$30 range for the last decade, fell 0.5 percent in after-hours trading, to $26.87. They closed at $27.04 on Nasdaq.

(Reporting by Bill Rigby; Editing by Richard Chang)

Source: http://us.rd.yahoo.com/dailynews/rss/software/*http%3A//news.yahoo.com/s/nm/20111020/bs_nm/us_microsoft

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