Microsoft reveals profit boost - graduate jobs

IT graduates will be pleased to learn that software giant Microsoft has enjoyed a 51% increase in quarterly profits amid indications of a recovery in technology spending by large businesses.

Microsoft revealed that rising sales of the newest versions of its Windows operating system and Office software helped to compensate for smaller-than-predicted revenues from sales of consumer PCs during the three-month period.

For the first quarter of its financial year, Microsoft's net income rose to 5.4 billion US dollars (£3.4 billion) - an increase of 51%, while revenues improved 25% to 16.2 billion US dollars (£10.2 billion). Microsoft beat expectations on both fronts.

Bill Koefoed, Microsoft's general manager of investors relations, said the pick up in business spending coincided with recent product launches.

He added: "We ended up in this great sweet spot in business spending that was re-emerging after the downturn."

Mr Koefoed expects the spending to continue for some time as companies are using more than 400 million PCs that are more than four years old.

Meanwhile, Microsoft's online revenues, which come mainly from search advertising, rose 8% to 527 million US dollars (£332 million).