Microsoft Beats Expectations, Posts Record Quarter

Life is good for Microsoft, the world's largest software maker who showed up Wall Street by posting better-than-expected revenue for the fourth quarter. We're talking about $16.04 billion for the quarter ended June 30, 2010, a 22 percent increase from the same quarter one year ago.

"This quarter's record revenue reflects the breadth of our offerings and our continued product momentum," said Peter Klein, chief financial officer. "The revenue growth, combined with our ongoing cost discipline, helped us achieve another quarter of margin expansion."

Microsoft has been firing on all fronts, from the recent launch of Office 2010 to continued strong sales of Windows 7, which has now sold over 175 million licenses. All this on top of Windows Server, a revamped Xbox that's purportedly cheaper to produce, and Bing, which Microsoft says has been gaining market share for 13 consecutive months.

"We saw strong sales execution across all of our businesses, particularly in the enterprise with Windows 7 and Office 2020," said Kevin Turner, chief operating officer. "Our transition to cloud services is well underway with offerings like Windows Azure and our Business Productivity Online Services, and we look forward to continuing our product momentum this fall with the upcoming launches of Windows Phone 7 and Xbox connect."