Microsoft makes $3 billion Q4 profit

Despite lacklustre interest in its Windows Vista operating system, Microsoft managed to meet lofty market expectations, turning in a $3.04 billion (₤1.52 billion) net profit in its fourth quarter, fuelled by strong sales of Office and gains from its internet and advertising operations.

However, the impressive results were tarnished by the $1 billion (₤500 million) provision the company made to cover the cost of repairs to faulty Xbox 360 game consoles and extending warranties.

Net profit was $3.04 billion, or 31 cents per diluted share, in its fiscal fourth quarter, up from $2.83 billion, or 28 cents per diluted share, in the year-earlier quarter. Revenue rose 13 percent to $13.4 billion.

The company slightly raised its fiscal 2008 earnings-per-share forecast range to $1.69 to $1.73 from its previous estimate of $1.68 to $1.72. It lifted its fiscal 2008 revenue range to between $56.8 billion and $57.8 billion from its prior forecast of $56.5 billion to $57.5 billion.

Microsoft said it continued to see strong adoption of its new Office 2007 business software suite, launched earlier this year.

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