Microsoft profits soar due to high demand for Windows 7

Microsoft, the world’s largest software company, has announced its profits for the October to December period and has exceeded analysts expectations.

The software giant, which released the Windows 7 operating system in October, said net profit came in at $6.66 billion (£4.13 billion) for the three months to 31 December 2009, compared with the $4.18 billion it posted in the same period a year earlier.

Microsoft said the rise was primarily due to “exceptional demand” for Windows 7.

Kevin Turner, chief operating officer, said: “We are thrilled by the consumer reception to Windows 7. This is a record quarter for Windows units.”

The figures come just a few days after online search giant Yahoo posted strong quarter four profits but said sales continue to decline.

Yahoo, which has signed a 10-year search and advertising deal with Microsoft to challenge US search engine giant, Google, said net profit in the October to December period was $153 million (£95 million) compared with a $303 million loss in the same period in 2008.

Meanwhile, Google said revenues rose 17% in the fourth quarter 2009 compared with the same period a year ago.

Advertising earnings at Google were higher at the company with revenues totalling $6.67 billion (£4 billion) in the October to December period - up from $5.7 billion a year ago.

Returning to Microsoft, the Windows 7 system has become the strongest-selling operating system after the disappointing Vista software.

Windows runs on over 90% of the world’s PCs.

However, like many other software companies, Microsoft has not been immune to the global economic downturn and a cost-cutting programme led to mass redundancies with the company axing 5,000 positions.

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