US computer software giant Microsoft last night reported that third-quarter profits rose 16.4% due to demand for its latest products.
Net income for the quarter came to $3.9 billion, or 29 cents per share, compared with $3.3 billion for the same period last year. The figures were short of Wall Street expectations of 33 cents per share.
Revenues for the company rose 13% to $10.9 billion. Demand for new software releases along with the company's Xbox 360 electronic game system 'drove robust performance', according to Microsoft.
Microsoft is the maker of the Windows operating system, used in an estimated 90% of the world's PCs. Windows' latest incarnation is called Vista.
Microsoft managers predicted earnings of 30 cents per share and operating income ranging from $4-4.2 billion in the quarter ending June 30. The outlook was also below Wall Street expectations.
Shares in Microsoft dropped by 11% on Friday afternoon, their biggest drop in more than five years, after the software giant said greater investment to take on rivals would hurt future earnings.
