Microsoft quarterly earnings meet estimates

Microsoft on Thursday posted quarterly results that meet analysts' expectations, as big sales gains in gaming and server divisions offset decline in its Windows business.

The software giant reported quarterly revenue of 20.89 billion U.S. dollars for the quarter ending Dec. 31, 2011, a 5-percent increase from the same period a year earlier.

Net income and diluted earnings per share were 6.62 billion dollars and 78 cents per share, compared with 6.63 billion dollars and 77 cents per share respectively in the same quarter of 2010.

Analysts had expected Microsoft to post 20.9 billion dollars in revenue and earnings per share of 76 cents, according to Thomson Reuters.

"We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services," Steve Ballmer, chief executive officer of Microsoft, said in a statement.

"Coming out of the Consumer Electronics Show, we're seeing very positive reviews for our new phones and PCs, and a strong response to our new Metro style design that will unify consumer experiences across our phones, PCs, tablets, and television in 2012," he said.

Among Microsoft's business divisions, the Windows and Windows Live Division posted revenue of 4.74 billion dollars, a 6-percent decline from the same period of 2010. The Entertainment and Devices Division reported revenue of 4.24 billion dollars, an increase of 15 percent from the prior-year quarter.

"In addition to the continued strength of our commercial business, this holiday season was the strongest in Microsoft history, thanks to good sales execution and compelling products like Xbox 360 and Kinect," said Kevin Turner, chief operating officer at Microsoft.

The company said a couple of new devices like Windows 7 Ultrabooks and new Windows Phones, as well as the upcoming Windows 8 operating system, would be highlighted this year.