BBC: Microsoft sees 60% jump in profit, boosted by Windows 7

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http://news.bbc.co.uk/2/hi/business/8486378.stm

Microsoft has reported a 60% jump in profit, thanks largely to "exceptional demand" for Windows 7.

Net profit came in at $6.66bn (£4.13bn) for the three months to 31 December 2009, up from the $4.18bn it made in the same period a year earlier.

It also reported record revenues of $19.2bn, which comfortably beat analysts' forecasts.

"We are thrilled by the consumer reception to Windows 7," said Kevin Turner, chief operating officer.

"This is a record quarter for Windows units."

Strong festive trading at Amazon

Microsoft released Windows 7 in October last year.

'Outstanding'

Microsoft was helped by a rebound in personal computer sales in the run-up to Christmas.

Microsoft's results are closely tied to computer sales because its two most profitable divisions make the Windows Operating System and Office business software.

"These are outstanding numbers," said Brendan Barnicle from Pacific Crest Securities.

"The online business came in line and the only business shy of expectations was Xbox," Barnicle said. [added by me]

"The upside was in the Windows business and service and tools, and Office business. The online business came in line and the only business shy of expectations was Xbox."

Shares in Microsoft rose 25 cents, or 0.9%, to $29.41 in after-hours trading.

Meanwhile, online retail giant Amazon also saw a leap in earnings.

It reported a $384m net profit in the last three months of 2009, up from $225m a year ago. Sales rose 42% to $9.5bn.