Microsoft Delivers Strong Growth and Includes a Sunny Forecast - New York Times

Impressive momentum

Microsoft’s strong performance was led by its three major businesses: personal computer operating systems, office productivity programs and software that runs computers in corporate data centers. The company, the world’s largest software maker, continues to struggle and lose money as it battles Google in its new markets for Internet services and online advertising.

But for Microsoft, that is a financial challenge of the future, one overshadowed by the heft and continuing growth in its personal computer products, led by the Windows Vista operating system and Office 2007. Microsoft’s desktop software divisions accounted for 56 percent of the company’s revenue and more than 80 percent of the operating profit of its product groups.

Microsoft Delivers Strong Growth and Includes a Sunny Forecast - New York Times