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| Software giant Microsoft is upbeat about its
financial prospects |
Microsoft has seen its quarterly profits almost double, boosted by
strong demand for its server software and Xbox computer games console.
The world's biggest software company reported third-quarter net profits
of $2.56bn (￡1.3bn), up from $1.32bn at the same time last year.
However, Microsoft's sales during the three months to March did not
fully match market expectations.
Revenue rose to $9.6bn - below analysts' forecasts for $9.8bn.
"Given our optimism about the future with our strong product pipeline
and the growth opportunities from our investments in innovative products
and services, we expect increased revenue growth in fiscal 2006," said
Scott Di Valerio, Microsoft's corporate vice-president and controller.
Microsoft forecast fourth-quarter revenue of $10.1bn to $10.2bn,
compared with Wall Street's target of $10.1bn.
The company's robust profits followed a warning
from a European Union (EU) spokesman on Wednesday that Microsoft could
incur
additional fines
unless it did more to stop abusing its dominant market position.
In March 2004, the EU found Microsoft guilty of preventing competition
and fined the company 497m euros ($640m; ￡343m), ordering it to open up
its core software systems to rivals.
The EU spokesman's comments came after a meeting between EU competition
commissioner Neelie Kroes and Microsoft boss Steve Ballmer.
(BBC) | 
Updated: 2005-04-29 09:02
