Microsoft shares rise on Q3 profits

| October 23, 2009 | 0 Comments
Microsoft shares rise on Q3 profits

Microsoft, the world’s largest software company, has today announced its profits for the July to September period and has exceeded analysts expectations, which led to an 8% rise in its shares in pre-market trading to $28.68.

The software giant, which released its new Windows 7 operating system yesterday, said net profit came in at $3.57 billion (£2.18 billion), down 18% compared with the same period a year earlier.

Meanwhile, sales fell 14% to $12.92 billion, due in part, to its policy of promising free Windows upgrades to people who bought new PCs during the summer.

Microsoft deferred the revenue from the sales of upgrades, if it had not done so, revenue would only have fallen by 4%.

The results come just a few days after online search giant Yahoo posted its quarter three profits and exceeded analysts expectations, suggesting that advertisers are spending again.

Yahoo said it earned $186 million (£113.6 million) in the July to September period, more than treble the $54 million earned in the same period of 2008.

Yahoo signed a 10-year deal with Microsoft in July to challenge Google - however the deal is still awaiting regulatory approval but is expected to be completed in early 2010.

Meanwhile, Google also posted a rise in third quarter profits. The search giant also exceeded analysts expectations by announcing that revenue for the period was $4.38 billion - analysts had expected $1.29 billion.

Google chief executive Eric Schmidt said: “The worst of the recession is clearly behind us and we now have the confidence to be optimistic about our future.”

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