REDMOND, Wash.-Microsoft Corp.’s mobile business neared profitability, and strong demand for the company’s PC and corporate server software helped it beat profit estimates during its first quarter.
The software giant reported $74 million in revenue from its mobile and embedded devices business, up 50 percent from $49 million during the same period last year. The segment showed a loss of $2 million on the quarter, down dramatically from the $29 million deficit posted in the first quarter of 2004.
Overall net first-quarter income rose 24 percent to $3.14 billion, or 29 cents a share, compared with $2.53 billion, or 23 cents a share, a year ago. The latest quarter included a charge of 2 cents a share for a legal settlement with RealNetworks Inc.
The results were in line with the company’s earlier projections. Aside from the RealNetworks charge, Microsoft beat Wall Street expectations by a penny per share.
The software giant issued a weak forecast for the current quarter however due to its forthcoming Xbox game console. Microsoft predicted second-quarter earnings of 32 cents to 33 cents a share on revenue of $11.9 billion to $12 billion.
Shares of Microsoft inched upward on the figures, which were released after Thursday’s closing bell. The stock was up 52 cents a share to $25.37 in mid-day trading on the Nasdaq.
