REDMOND, United States (AFP) - The world's biggest software company, Microsoft Corp, said that its first quarter profits swelled to 2.9 billion dollars as consumers and businesses pumped up demand for new computers.
Microsoft rung up net profits of 2.9 billion dollars during its fiscal first quarter ended September 30. Quarterly profits were up 11 percent compared with profits of 2.6 billion dollars in the same period of 2003.
Diluted earnings per share were 27 cents a share compared with 24 cents a year ago, it said. Earnings came in near the top end of most analysts' forecasts.
"We've had a strong beginning to what we expect will be a very good year with continued growth in both our commercial and consumer businesses," John Connors, Microsoft's chief financial officer, said in a statement.
The software giant's revenues climbed to 9.2 billion dollars, up from 8.2 billion from the same period a year ago.
The Redmond-based group said its home and entertainment revenue had grown by nine percent on increased sales of its popular Xbox gaming console.
It also told investors it had received video game pre-orders of 1.5 million for its Halo 2 video game, which is due to launch on November 9, just ahead of the Christmas holiday shopping season.
Earlier this month, Microsoft unveiled a new technological assault that it hopes will deliver music, movies and television into consumers' living rooms directly via their home computers.
Microsoft chief Bill Gates unveiled the expanded Windows XP Media Center 2005 operating system, a group of software and linked hardware products that can turn a computer into home entertainment center on which users can download music, movies, watch television or listen to radio.
The US firm, which has long battled to win a secure foothold to allow it to dominate the digital entertainment and TV market, hopes the updated system will make it a leading force in the burgeoning sector.
Microsoft's shares were trading down 56 cents, or 2.0 percent, at 28.00 dollars in after hours trading after closing at 28.56 dollars.
10/22/2004 - 12:54 GMT - AFP