US software giant Microsoft posted a more than 30% rise in quarterly net profit but pocketed less than gadget-maker Apple for the first time in two decades.
Microsoft said net profit increased 31% to $5.23 billion in the third quarter of its fiscal year while revenue rose 13% to $16.43 billion in what the company called a 'mixed' market for personal computers. Earnings per share of 61 cents were better than the 56 cents forecast by Wall Street analysts.
Apple reported quarterly net profit of $5.99 billion last week on revenue of $24.67 billion - the first time it has posted a higher net profit than Microsoft since March 1991. In May of last year, Apple dethroned Microsoft as the largest US technology company in terms of market capitalisation.
Microsoft said today that Windows 7 was the fastest selling operating system in history with 350 million licences sold, although revenue for the segment was down 4% in the quarter to $4.4 billion, in line with PC trends.
'We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses,' Peter Klein, Microsoft's chief financial officer, said.
'Consumers are purchasing Office 2010, Xbox and Kinect at tremendous rates, and businesses of all sizes are purchasing Microsoft platforms and applications,' Klein said.
While Microsoft's online services division saw revenue grow 14% to $648m, it suffered an operating loss of $726m. Microsoft said revenue at its business division grew 21% in the quarter and Office 2010 has become the fastest selling version of the productivity suite ever.
Revenue grew 60% in the entertainment and devices division, Microsoft said, primarily from the popularity of the Kinect motion-controller for the Xbox 360 game console.
Computer server and tools revenue was up 11%, the company added.
