Microsoft sees Q4 profits soar

Microsoft Corp, the world’s largest software maker, reported fourth-quarter profit and sales that exceeded analysts’ predictions as demand from corporations outweighed lacklustre buying from consumers.

Net income in the fiscal period that ended in June rose 30% to $5.87 billion (€4.07bn), or 69 cents a share, from $4.52bn, or 51c, a year earlier, Redmond, Washington-based Microsoft said in a statement. That beat the 58-cent estimate of analysts surveyed by Bloomberg.

Sales rose to $17.4bn, compared with the $17.2bn average projection.

Corporations, eager to upgrade fleets of computers, are snapping up Microsoft’s Office business-productivity programs and its flagship Windows operating system.

That made up for weaker demand from consumers who favoured smartphones and tablets sporting Apple Inc. and Google Inc. software. Some customers closed multiyear agreements, said Colin Gillis, an analyst at BGC Partners LP in New York.

“The company has a solid line of products that produce multiple revenue streams,” he said.

“We’re probably right in the middle of the enterprise refresh cycle so that’s good for Microsoft. Office is solid.”

Microsoft said operating expenses in the year that started July 1 will rise from $28bn to $28.6bn, reiterating an April forecast.

Microsoft rose in extended trading after the release. It had risen 4c to $27.10 at 4pm New York time on the Nasdaq Stock Market. The shares rose 2.4 percent last quarter, while the Standard and Poor’s 500 Index fell 0.4 percent.

The company follows Intel Corp in its underscoring robust buying by corporations.