Microsoftreported a 2 percent rise in quarterly profit, driven by sales of new computer server software, and lowered its full-year earnings forecasts to account for a toughening economy. But the company's shares rose in extended trading as the lowered outlook was less negative than some investors expected.
Microsoft reported earnings of $4.37 billion, or 48 cents a share, on sales of $15.1 billion in its fiscal first quarter, against a profit of $4.29 billion, or 45 cents a share, on sales of $13.762 billion last year.
Analysts surveyed by Thomson Reuters expect profit of 47 cents a share on $14.8 billion in revenue.
Shares of Microsoft rose about 2 percent in extended trading after finishing Thursday's regular session 3.67 percent higher at $22.32.
Microsoft, the world's largest software maker, cashed in on new releases of computer server software such as Windows Server 2008 operating system and database software SQL Server 2008.
Looking ahead, Microsoft said it expects fiscal second-quarter earnings of 51 cents to 53 cents a share, below the current consensus of 55 cents a share.