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  Microsoft Reports Record First Quarter Earnings
Time: 17:00 EST/22:00 GMT | News Source: Microsoft Press Release | Posted By: Jonathan Tigner

Microsoft Corp. today announced revenue of $9.19 billion for the quarter ended September 30, 2004, a 12% increase over revenue of $8.22 billion for the same period in the prior year. Operating income for the first quarter was $4.05 billion and net income was $2.90 billion. Diluted earnings per share exceeded Microsoft's guidance by $0.02 and were $0.27 including stock-based compensation expense.

"We've had a strong beginning to what we expect will be a very good year with continued growth in both our commercial and consumer businesses," said John Connors, chief financial officer at Microsoft. "This quarter we had a very healthy commercial server and desktop business driving double digit revenue growth, and we expect to continue the trend of growing revenue faster than expenses as we work to make each of our businesses more efficient and profitable."

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