Microsoft pulls down $US3.13 billion in first quarter

While the Department of Justice circled Microsoft over its business practices on Monday, the company was reporting Q1 revenues of $US3.13 billion, representing growth of 36% over the same quarter last year. It would have been more, but for a $296 million write-off related to the purchase of WebTV. Other notable factors included the strength of NT, with NT Server sales up 58% and NT Workstation accounting for 13% of the total Windows desktop operating system - its highest share ever.

While the Department of Justice circled Microsoft over its business practices on Monday, the company was reporting Q1 revenues of $US3.13 billion, representing growth of 36% over the same quarter last year.

Net income for the three-month period equaled $663 million, including a previously announced

$296 million write-off related to the purchase of Web TV. Without the WebTV write-off, earnings

per share of 72 cents represented an increase of 53%, compared to the 47 cents earned

during the same quarter last year.

With the WebTV acquisition taken into account, earnings per share for the quarter, which ended

September 30, totaled 50 cents.

"This was a very solid quarter across the company," said Greg Maffei, chief financial officer

at Microsoft, citing strong performances from Office 97, Windows 95, and Windows NT Server

4.0 and NT Workstation.

NT technology is gaining a stronger foothold in the enterprise, Maffei said. Sales of NT Server

were up 58%, he said, and NT Workstation now accounts for 13% of the total

Windows desktop operating system, up from 10% in the previous quarter and its highest

share ever.

The quarter also saw a rise in research and development spending at Microsoft. The company

spent $567 million on research and development in the three-month period, compared to

$432 million during the same period in the previous fiscal year.

In all, the company reported $10.8 billion in total current assets. For the same period last year,

the figure was $10.37 billion.

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