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LOS ANGELES: Microsoft, the world's largest software maker, on Thursday reported a sharp rise in fourth-quarter and fiscal year profit but signalled a weak outlook ahead.
Microsoft said net profit jumped 41 per cent in its fiscal fourth quarter from a year ago to US$4.29 billion.
Fourth-quarter earnings per share (EPS) were 46 cents, a penny shy of the 47 cents expected by Wall Street analysts.
For the full-year that ended June 30, Microsoft profit rose 25.7 per cent to US$17.68 billion, with EPS of US$1.90, topping expectations of US$1.88.
Revenues surged 18 per cent in the fourth quarter and the full year, to US$15.845 billion and US$60.4 billion, respectively.
Microsoft noted it had increased its annual profit by 25.7 per cent despite a US$1.1 billion charge to replace or repair Xbox 360 videogame consoles with a defective design.
"Delivering US$60 billion in annual revenue is an outstanding accomplishment," Microsoft chief operating officer Kevin Turner said in a statement.
"The outlook for fiscal year 2009 is positive given the breadth of our impressive technology portfolio and the expanding collection of online services we are bringing to market."
The company credited the results to demand across its product line, including its offerings for videogame consoles and business computers.
However, Microsoft's view on current business disappointed analysts.
The Redmond, Washington-based company said it was expecting EPS of 47-48 cents in the first quarter, slightly under the 49 cents expected, and revenue of US$14.7 to US$14.9 billion, compared with the US$15.06 billion seen by most analysts.
Its outlook for the 2008-2009 fiscal year was in line with market expectations: US$67.3 to US$68.1 billion in revenue and EPS of US$2.12 to US$2.18, compared with expectations of US$67.29 billion in sales and EPS of US$2.16.
"We had a strong finish in the fourth quarter, which capped off an impressive year for the company," said Microsoft chief financial officer Chris Liddell.
"Looking forward, despite difficult economic conditions, we will build upon the momentum exiting fiscal year 2008."
The solid earnings results came in the wake of Microsoft's failed effort to buy struggling Internet pioneer Yahoo to better fight arch rival Google for market share in online advertising and search.
Microsoft remains entangled in an Internet industry drama as billionaire corporate raider Carl Icahn tries to replace Yahoo's board of directors with a slate inclined to a tie-up with the software giant.
- AFP/yb
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