Friday, October 24, 2008

Microsoft continues to grow despite poor Economic crisis

SAN FRANCISCO (Reuters) – Microsoft Corp, the world's largest software maker, which cashed in on new releases of computer server software such as Windows Server 2008 operating system and database software SQL Server 2008 reported a 2 per cent rise in quarterly profit. The results that exceeded analysts' expectations, with profits up 2 percent to $4.37 billion.

Microsoft posted a net profit of $4.37-billion (U.S.), or 48 cents per diluted share, in its fiscal first quarter ended Sept. 30, against a profit of $4.29-billion, or 45 cents, in the year-ago period. Microsoft's chief financial officer Chris Liddell said - 'In a challenging economic environment, the first-quarter results exhibit the strength and diversity of our business model,'. Revenue rose 9 per cent to $15.06-billion.

Bloomberg financial news reports that the software giant plans to save $500 million by slowing down on its hiring, travel and marketing processes. Microsoft which has many clients with long term contracts can endure any economic slowdown longer than its rivals.

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