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Microsoft profits soar 31% on Office, Xbox

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Microsoft profits climbed 31 per cent during the quarter ending March 31, thanks to strong performance from the company's Office and Xbox divisions.

During its fiscal third quarter, the software giant racked up $5.23 billion in profits, a 31 per cent jump from a year ago, while revenues reached $16.43 billion, a 13 per cent climb.

"We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses," read a canned statement from Microsoft chief financial officer Peter Klein. "Consumers are purchasing Office 2010, Xbox, and Kinect at tremendous rates, and businesses of all sizes are purchasing Microsoft platforms and applications."

In the Microsoft's Business Division – home of Office – revenue grew 21 per cent from last year, while the Entertainment & Devices Division – home to Xbox and Kinect – grew 60 per cent year-over-year.

The Server & Tools Division – home to Windows Server – saw revenues grow 11 per cent, and Microsoft boasted that this was the divisions forth consecutive quarter of double-digit growth. But the Windows Division saw a 4 per cent decrease in revenues. But Microsoft said this was "in line" with current PC trends. IDC has said that global PC shipments dropped 3.2 per cent during the quarter.

In the Online Services Division – the Bing division – revenue grew 14 per cent year-over-year primarily, and Microsoft attributed most of this growth to Bing, ®

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