[27.04.2007 first posted on silicon republic]
Microsoft last night reported record profits for its third quarter of US$4.9bn and an operating income of US$6.5bn, driven by demand for Vista and Office.

The company reported revenues of US$14.4bn and investors in the company were awarded with 72pc earnings per share.
Looking ahead to the next quarter Microsoft is predicting a reduced revenue in the region of US$13bn and an operating income of US$5bn. Earnings per share in the fourth quarter are predicted to be between 37 cents and 39 cents.
For the full fiscal year ended in June, Microsoft is predicting end of year sales of up to US$57.5bn and an operating income of up to US$22.5bn. Earnings per share could be between US$1.68 and US$1.72.
“I am extremely pleased that we delivered a quarter of strong double-digit growth for revenue, operating income and EPS,” said Chris Liddell, chief financial officer at Microsoft. “And I am looking forward to a very good finish to this fiscal year with strength continuing into fiscal 2008.”
Net cash flow from operations in the third quarter was US$7.29bn and Microsoft returned US$7.72bn in cash to shareholders through share buybacks and dividends this quarter.
“This quarter marked the consumer launches of Windows Vista and the 2007 Microsoft Office system, and we are delighted with the positive customer response to these products,” said Kevin Turner, chief operating officer at Microsoft.
“We continue to deliver on our compelling product cycle and build upon strong field sales and marketing execution in order to drive revenue and profit growth for the company.”
By John Kennedy