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  Microsoft's quarterly earnings off 38%
Time: 01:32 EST/06:32 GMT | News Source: Seattle PI | Posted By: Todd Richardson

Microsoft Corp.'s quarterly earnings dropped more than 38 percent because of the costs of a legal settlement, an antitrust fine and changes in the way it compensates employees. But the company pointed to steady growth in its core businesses, including sales of the Windows operating system, as a sign of continued strength. The company's overall revenue exceeded analysts' expectations by growing 17 percent for the quarter ended March 31, to $9.18 billion. Contributing to the strong result was the company's MSN Internet division, which posted a quarterly profit for the second time in its history.

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