Microsoft's 11 Percent in Q1 Exceeds Expectations

However, the company also warned that its results for the second quarter of the current fiscal year will be affected, and about plans to postpone the 1.5 billion US dollars of income to the following quarter. The companys overall results for the full 2007 fiscal year, which ends in June, is not expected to be affected.

Microsoft is expected to delay income, as a plan to provide consumers buy computers in the next few months, consumer coupons are good for free or discounted upgrade to the new versions of Windows and Office.

After repeated delays, Windows Vista is due to reach the hands of consumers in January. Microsoft and computer manufacturers to provide coupons in the hope that people will buy the new Windows-driven computer as a holiday gift, even if they will be running soon to be outdated operating system. Office 2007 also is not only because consumers until next January.

For the first quarter of the fiscal year, Microsoft said it earned 3.48 billion US dollars, or 35 cents a share, compared with earnings of 3.14 billion US dollars, or 29 cents a share, a year earlier.

Performance in the same period last year included a one-time legal costs of 2 cents a share.

The company said its fiscal revenue in the first quarter of 10.81 billion US dollars, an increase of 11 percent over 9.74 billion US dollars in the same period a year earlier.

Thomson Financial analysts had expected a profit of 31 cents a share, on revenue of 10.75 billion US dollars.

Microsoft chief financial officer Kelishilideer said net income increase in the higher-than-expected investment income. He said Microsoft can also reduce expenditure in the just-concluded quarter, but he warned that so little money will be used in the current quarter, contrary to the marketing and other efforts.

Liddell said Microsoft also had higher-than-expected revenue from server software, and the unit, which includes the Xbox game console.

For the current fiscal second quarter ended December 31, Microsoft said it expects full-year profit will be between 22 cents and 24 cents a share. The company said the results would be about 11 cents less than they might have been because of 1.5 billion US dollars revenue deferred plan.

Microsoft said that after delayed for 1.5 billion US dollars, revenue for its second quarter would be between 11.8 billion US dollars and 12.4 billion US dollars.

Analyst with sensory integration dysfunction parakh ragen mcadams Wright said, although some analysts warn the deferred revenue, some people may not have the desired impact, earnings would be quite so high.

Microsoft expects full-year earnings from 1.43 to 1.46 US dollars per share fully in the fiscal year ending in June, a small modifications to a previous forecast of 1.43 to 1.47 US dollars per share .

But revenue for the 12-month period, are expected to be 50 billion US dollars and 50.9 billion US dollars, a slight increase over the previous forecast of 49.7 billion US dollars to 50.7 billion US dollars.

Liddell said fiscal year profit forecast was lowered, in part because the company plans to buy back about 20 billion US dollars value of the stock is not expected to succeed. Microsoft not only to buy back about 40 billion dollars in stock.

Analyst Alan Davis and da Davidson said he was more pleased with the overall performance.

"This is not a bad quarter, and not a bad prospect," he said.

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