Microsoft's latest profit swept past Wall Street forecasts thanks to renewed demand from businesses for software.
The world's biggest software company, which has been unloved by investors so far this year, reported first-quarter profits of $5.41bn (£3.4bn), up from $3.57bn in the same period last year.
Appetite from companies for Microsoft's new version of Office helped the Seattle-based company cope with much weaker demand from consumers. Sales to businesses came in at $5.13bn, while sales of software used in servers hit $3.96bn. Microsoft's Windows 7, the operating software for PCs that succeeded the ill-fated Vista, had sold 240 million licenses for the software in its first year, making it the fastest-selling operating system in history.
Founded in 1975 by billionaire Bill Gates, investors are anxious about how Microsoft will fare in a world in which more software is provided via the internet, and as more computing generally moves from desktop computers to mobile phones and tablets.
Chief executive Steve Ballmer has said that the company is betting its future on internet-based software - or cloud computing - and next year will pour 90pc of its $9bn annual research and development budget into it.
“We are seeing improved business demand and adoption. Our enterprise agreement rates were strong, reflecting business commitment to Windows 7, Office 2010, and our server and database products,” said Kevin Turner, Microsoft's chief operating officer.
Shares in Microsoft jumped more than 3pc in extended trading in New York, but have lost more than 10pc of their value this year.
Founded in 1975 by billionaire Bill Gates, investors are anxious about how Microsoft will fare in a world in which more software is provided via the internet, and as more computing generally moves from desktop computers to mobile phones and tablets.
Chief executive Steve Ballmer has said that the company is betting its future on internet-based software - or cloud computing - and next year will pour 90pc of its $9bn annual research and development budget into it.
“We are seeing improved business demand and adoption. Our enterprise agreement rates were strong, reflecting business commitment to Windows 7, Office 2010, and our server and database products,” said Kevin Turner, Microsoft's chief operating officer.
Shares in Microsoft jumped more than 3pc in extended trading in New York, but have lost more than 10pc of their value this year.
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