Microsoft profit ahead of forecasts on Xbox sales

MICROSOFT, the world’s largest software maker, posted a second-quarter profit that surpassed analysts’ estimates on sales of its Xbox 360 game console and Windows programs for personal computers.

Net income in the period ended December 31 rose 79% to $4.71 billion (€3.19bn), or 50 cents a share, from $2.63bn, or 26c, a year earlier, the company said last night. That beat the 46 cent average of estimates compiled by Bloomberg. Sales climbed 30% to $16.4bn.

Microsoft has had operations in Ireland since 1985 and employs 1,200 full-time staff and 700 vendor staff.

PC sales rose more than Microsoft forecast, bolstering orders for Windows and Office programs. Holiday purchases of the Xbox 360 also fuelled revenue as shoppers bought the console to play the hit Halo 3 shooting game, unavailable on rival systems such as Nintendo’s Wii.

“The games division is doing really well,” said Avi Cohen, head of research at Boston research firm Avian Securities. “They are competing well against the Wii and Halo is certainly helping.”

In the year-ago second quarter, Microsoft deferred $1.64bn in sales, cutting revenue and profit.

Microsoft, based in Redmond, Washington, rose as much as $1.44, or 4.33%, in early after market trading last night. The shares advanced 19% last year.

Microsoft said profit in the year ending June 30 will be $1.85 to $1.88 a share, on sales of $59.9bn to $60.5bn. Analysts on average anticipated profit of $1.81 and sales of $59.4bn, according to a Bloomberg survey.

Microsoft had previously forecast profit of $1.78 to $1.81 on sales of $58.8bn to $59.7bn.