Microsoft's profits for the third quarter jumped 19 per cent as its core Windows division reported higher sales, despite reports of tanking sales for personal computers.
Microsoft's Q3 earnings report follows figures released by IT research outfits Gartner and IDC that showed double digit slumps in PC shipments.
IDC said worldwide sales of personal computers fell 13.9 per cent in the first quarter of 2013, while Gartner found that PC shipments in Asia declined 10.3 per cent in the first quarter of 2013 compared to the previous corresponding quarter.
Despite the gloomy research figures, Microsoft's Windows and Windows Live division saw revenue rise 23 per cent while sales of its cash cow Office productivity suite were up 8.2 per cent. Revenue for its server operating systems and tools was up 11 per cent.
Microsoft reported a profit of US$6.06 billion, up from $5.11 billion, a year earlier. This included a net revenue recognition of $1.67 billion for the Windows upgrade offer, Office upgrade Offer and pre-sales, and video game deferral.
Revenue rose 18 per cent to $20.49 billion.
Microsoft has watched its grip on the personal computing operating system market loosen with the phenomenal rise in tablet and smartphone sales which mainly use operating systems from Apple and Google.
The software giant fought back last year, releasing Windows 8, which works with touch screens, as well as its own line of Windows 8 based Surface tablets. Reports say Microsoft will boost its tablet offerings later this year with a range of smaller, 7 inch screen tablets.
Microsoft also said its chief financial officer Peter Klein, would leave at the end of the fiscal year and that it would announce a new CFO from its finance leadership team in the next several weeks.
