Microsoft profits rise despite Xbox problems
Microsoft has posted massive profits in its latest financial report. The figures come despite relatively low demand for its new operating system, Vista, and the fact that the company has had to set aside $1 billion (£500 million) to cover the cost of repairs to faulty Xbox 360 game consoles and extending warranties.
Net profit was $3.04 billion, or 31 cents per diluted share, in its fiscal fourth quarter, up from $2.83 billion, or 28 cents per diluted share, in the year-earlier quarter. Revenue rose 13 percent to $13.4 billion.
The company slightly raised its fiscal 2008 earnings-per-share forecast range to $1.69 to $1.73 from its previous estimate of $1.68 to $1.72. It lifted its fiscal 2008 revenue range to between $56.8 billion and $57.8 billion from its prior forecast of $56.5 billion to $57.5 billion.
Microsoft said it continued to see strong adoption of its new Office 2007 business software suite, launched earlier this year.