Microsoft was able to sustain much of its traditional momentum in its third financial quarter ending 31 March, recording an increase in revenues of 13% to $7.2 billion as profits rose 12%. That means the company now takes almost $1 billion to the bank each month and lives with a net margin of an unbelievable 38%.
However, somewhat predictably, the software giant warned that sales in its current quarter and coming financial year would not fare as well. Continued weak sales of personal computers and slower than hoped for demand for its Xbox games console would be to blame, its CFO suggested.
The stagnant market for PCs has impacted sales of Microsoft's flagship Office product badly – the product line only produced 1% in revenue growth during the third quarter – and analysts suggest the situation is unlikely to improve in the near future.