Windows opens wider to give Microsoft a surprise profit boost

MICROSOFT’S third-quarter results beat analyst expectations as the world’s largest software maker was boosted by a surprising rise in sales of its Windows operating system, which is due to be revamped later this year.

The company reported quarterly profit of $5.1 billion (£3.2bn), or 60 cents per share. That compared with $5.23bn, or 61 cents per share, for the same quarter a year ago, when it posted a one-off tax gain.

Profits beat analysts’ average forecast of 57 cents per share.

Sales rose 6 per cent to $17.41bn, driven by strong demand for its server software products and Office application. Analysts had expected sales of $17.18bn.

Microsoft chief executive Steve Ballmer said: “We’re driving toward exciting launches across the entire company, while delivering strong financial results.”

The group has not said when its Windows 8 system will be released, but most in the industry expect it on devices from around October, offering an alternative to Apple’s iPad. New Windows smartphone software is expected around the same time.

Worldwide personal computer sales rose a modest 1.9 per cent in the quarter, according to technology research firm Gartner.

That helped Microsoft, which supplies the operating system for 90 per cent of PCs, to post a 4 per cent increase in sales of Windows, still its main product.

“The Windows beat was a positive surprise, looking at about 4 per cent growth, versus expectations for about a 4 per cent decline,” said Josh Olson, an analyst at Edward Jones.