Microsoft has recorded a quarterly profit that fell within estimates on robust sales in its main businesses, but warned revenue growth would slow in the current quarter amid still-sluggish demand for personal computers. The company employs around 2,000 people in the Republic.

Microsoft said operating income for its fourth quarter to the end of June was $2.75 billion (#3.17 billion), up from $2.55 billion a year earlier. This excluded a $2.6 billion non-cash investment charge.

Including the pre-announced investment charge, net income was $66 million, or 1 cent per share, down from $2.4 billion a year earlier.

Operating income per share, including interest and dividend gains but excluding the non-cash investment charge, would have been 43 cents in the fourth quarter, in line with Wall Street expectations, chief financial officer Mr John Connors said.

Revenues for the quarter were $6.58 billion, up 13 per cent from $5.8 billion a year earlier.

"We were particularly pleased to see strong adoption of Windows 2000 on the client (desktop computers)" Mr Connors said. Microsoft said revenues for the current quarter would be $6-$6.2 billion, down by 6 to 9 per cent from the June quarter, but up 3.5 to 7 per cent from a year earlier.

Meanwhile, Sun Microsystems, the computer network technologies maker has said its quarterly earnings fell 81 per cent from a year earlier to $134 million. The company employs around 250 in Dublin.

The earnings, amounting to four cents per share, were a cent better than Wall Street analyst forecasts of 3 cents a share. Net revenues were $4 billion dollars, down from $5 billion a year ago.

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