Microsoft beats Q2 Wall Street estimates

Summary:Microsoft Corp. reported second-quarter earnings that beat analysts' estimates and quelled any fears that its recent legal problems might eat into sales.

Microsoft Corp. reported second-quarter earnings that beat analysts' estimates and quelled any fears that its recent legal problems might eat into sales.

The Redmond, Wash.-based software company reported net income of $1.13 billion, or 85 cents per share, up from $741 million, or 57 cents per share, in the year-ago quarter. Analysts had expected the company to earn 82 cents, according to First Call.

Microsoft's (MSFT) second-quarter sales climbed to $3.58 billion from $2.68 billion in the year-earlier quarter.

Microsoft attributed the results to strong sales of its Office 97 products, but the company warned that economic problems in Asia could hinder revenue in the coming quarters.

Microsoft shares fell slightly in late trading, before the announcement, dropping 81 cents to $137 amid a general decline in technology stocks after IBM Corp. (IBM) warned its profit may drop in the current quarter.

Still, Microsoft's stock has climbed in recent weeks after dropping sharply late last year amid a legal tangle with the U.S. Department of Justice and a slip among many tech stocks.

Full update to follow.

Topics: Microsoft, IBM

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.