Microsoft reported double-digit gains in sales and profits for its fiscal third quarter ended March 31.
Sales were up 13 percent to $16.43 billion for the quarter compared to last year's fiscal third quarter.
Net income was $5.23 billion, up 31 percent year on year and operating income was $5.71 billion up 10 percent from the prior year.
"We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses," said Peter Klein, chief financial officer at Microsoft. "Consumers are purchasing Office 2010, Xbox and Kinect at tremendous rates, and businesses of all sizes are purchasing Microsoft platforms and applications."
The Entertainment & Devices Division grew 60 percent year-over-year, fueled by Kinect for Xbox 360 and continued strong Xbox 360 console sales and growth of Xbox Live.
Windows 7 remains the fastest selling operating system in history with 350 million licenses sold, Microsoft reported. Revenue for the segment was down 4 percent in the third quarter, in line with the PC trends, excluding prior year launch impact.
Online Services Division revenue grew 14 percent year-over-year primarily driven by increases in search revenue. Bing's U.S. search share increased to 13.9 percent this quarter.