Microsoft second-quarter earnings up 5 percent on strong demand for PCs

SEATTLE — Microsoft Corp. said earnings for its fiscal second quarter rose 5 percent, helped by a successful launch of a new server product and a healthy market for personal computers, and it slightly nudged up its fiscal year profit and revenue guidance.

For the three months ended Dec. 31, the Redmond-based software maker reported earnings of $3.65 billion, or 34 cents per share, up from $3.46 billion, or 32 cents per share, in the same period last year.

The results included a one-time tax benefit of $108 million, or 1 cent per share. Without the one-time benefit, Microsoft met the expectations of analysts polled by Thomson Financial, who were projecting earnings of 33 cents per share on revenue of $11.96 billion.

Microsoft said revenue rose 9 percent to $11.84 billion, up from $10.82 billion in the same period a year earlier.

Chief Financial Officer Chris Liddell said strong demand for personal computers helped give a lift to its Windows operating system, while sales of a new version of its SQL Server software exceeded expectations.

“We were happy with the overall financial performance,” he said.

Liddell said Microsoft had shipped 1.5 million Xbox 360 videogame console by Dec. 31, and was still on track to ship between 4.5 million and 5.5 million by June 30, when its fiscal year ends. The Xbox 360 became a holiday must-have item, frustrating some consumers who weren’t able to get their hands on one.

“We obviously had incredible market reception,” Liddell said.

But analyst Jamie Friedman with Soleil Securities said the company failed to meet even his reduced expectations for Xbox sales, while also losing more money than he expected. Microsoft’s home and entertainment division, which includes Xbox, lost $293 million during the quarter, after earning $55 million in the year-ago period.