Microsoft profits up 30pc but market frets over PCs

MICROSOFT posted a 30 per cent rise in its fourth-quarter profit yesterday, smashing market forecasts, as sales of its Office software and Xbox games consoles continued to soar.

Revenues hit a record high of $17.4bn (£10.8bn), up eight per cent from the same quarter in 2010, while net profit was $5.9bn, up from $4.52bn in 2010.

But revenues from its Windows operating system fell one per cent in the quarter as sales of new PCs remained soft, and its share price fell marginally in after hours trading on the news.

Its full-year revenues were 12 per cent up on the year to June 2010 at $69.9bn, while full-year net income jumped 23 per cent to $23.2bn.

But Windows full year revenues were two per cent down and analysts fretted that growing demand for Apple products and tablet computers could hit Microsoft hard. Its shares fell 0.3 per cent after hours.