MICROSOFT ANNOUNCED its fiscal first-quarter results on Thursday, which surpassed analyst expectations thanks to gains from its Surface and Xbox divisions.
Microsoft posted $4.5bn in profit on $23.2bn in revenue for the quarter ended 30 September, surpassing Wall Street estimates of $22.02bn in revenue and showing an increase of 25 percent year on year.
Hoiwever, at $4.5bn, profits were down 13.4 percent from the $5.2bn posted in the year-ago quarter. Microsoft has blamed this on the $1.14bn spent on restructuring costs attributed to the integration of Nokia.
Microsoft CEO Satya Nadella said: "We are innovating faster, engaging more deeply across the industry, and putting our customers at the centre of everything we do, all of which positions Microsoft for future growth.
"Our teams are delivering on our core focus of reinventing productivity and creating platforms that empower every individual and organisation.”
Microsoft's biggest success story in Q1 was its Devices and Consumer division, which saw revenue grow 47 percent to $10.96bn during the three-month period.
Interestingly, Microsoft's announcement of increased Surface sales come just days after Apple announced that iPad sales had decreased by 13 percent.
Microsoft's Devices and Consumer division revenue also grew thanks to bumper Xbox sales, which rose 102 percent to 2.4 million.
Revenue from sales of Windows Phone hardware was also up during the quarter to $2.6bn, with sales of Lumia devices reaching 9.3 million, a 5.6 percent increase from the record 8.8 million handset sales in the same period last year.
Microsoft's Commercial division also reported successes during the quarter. The firm's server products and services revenue increased 13 percent during the quarter, while revenue from Microsoft's Office commercial products and services saw a five percent increase over the three-month period.
The firm also announced that Office 365 Home and Personal subscribers totalled more than seven million, showing 25 percent year-on-year growth.
Microsoft also boasted that revenue from Windows volume licensing increased 10 percent, while commercial cloud revenue was up 128 percent.
"Customers are embracing our latest technologies from Surface Pro 3 and Office 365 to Azure and SQL Server," said Kevin Turner, chief operating officer at Microsoft.
"Through great execution by our sales teams and our partners, we have been able to deliver our truly differentiated value to the marketplace." µ
Oh and it'll also help give aural pleasure
But it might still not be enough to make virtual reality super appealing
And a ridiculous competition
Now you can talk to your silly-looking earbuds too