Net profit climbed to a better-than-expected 2.79 billion dollars or 26 cents a share in the three months to March 31, up from the year-ago result of 2.74 billion dollars or 25 cents a share.

Sales surged 8.1 percent to 7.84 billion dollars.

"We reported another quarter of strong revenue and operating income results in a very tough environment," said Microsoft chief financial officer John Connors.

"While there is obviously a great deal of economic uncertainty ahead, our ongoing investment in research and development has resulted in a broad product pipeline," he added.

"We believe that these innovative products will enable our customers to get more productivity and value out of their IT investments."

Microsoft said revenue from software for servers -- powerful computers that run networks -- had jumped 21 percent from the same period last year.

The business service division, Microsoft Business Solutions, posted year-over-year revenue growth of 96 percent.

SPACE.WIRE