Microsoft's Earnings

"This fiscal year is off to an outstanding start with the fastest revenue growth of any first quarter since 1999," said Chris Liddell, chief financial officer at Microsoft. "Operating income growth of over 30% also reflects our ability to translate revenue into profits while making strategic investments for the future."

The reported earnings of .45 cents a share and analysts were expecting .39 cents a share.  That's really good.

 Microsoft's businesses of Client, Microsoft Business Division, and Server and
Tools grew combined revenue in excess of 20%, and experienced robust demand for
Windows Vista, the 2007 Microsoft Office system, Windows Server, and SQL
Server.

  "Customer demand for Windows Vista this quarter continued to build with double-digit growth in multi-year agreements by businesses and with the vast majority of consumers purchasing premium editions," said Kevin Johnson, president of the Platform and Services Division at Microsoft.

  During the quarter, Microsoft's two consumer focused divisions passed milestones with the successful close of the company's largest ever acquisition, aQuantive, and Halo 3 achieving the biggest entertainment launch day in history.

  "Backed by an amazing product line-up, our sales force, marketing teams, and partners delivered another excellent quarter," said Kevin Turner, chief operating officer at Microsoft.

-SM