Personal computer and business sales boost Microsoft revenues to €7.3bn

MICROSOFT had good news for shareholders yesterday as first quarter revenues surged 12% to €7.3 billion on the back of renewed IT spending among businesses and higher sales of personal computers.

Profits for the three months to September rose 11% to $2.9bn, but the share price slipped back 2%. Analysts blamed the fall on a change to the accounting treatment of share-based pay packages, which made profits seem lower than expected even though they beat market expectations.

Operating income grew 29%. Chief executive John Connors said the first quarter had been a strong beginning to what he expected would be a good year. He predicted growth in sales to consumers and businesses.