Microsoft posted third quarter profits and revenues that topped Wall Street estimates as the software giant bucked a wider technology slump with strong sales of its Windows 2000 operating system.
Microsoft said its net profit inched up 2.5 per cent to $2.45 billion in the first quarter of the year.
The results sent Microsoft shares up as much as 6 per cent to $72.50 in after-hours trading, following a 4 per cent rise on the Nasdaq, where it closed at $68.04.
The stock has fallen about 20 percent in the last year, more than the Standard & Poors 500, which has slid about 17 per cent, but holding up better than the technology-laden Nasdaq index, which has fallen more than 45 per cent.
Despite the surprisingly good results, the company issued cautious guidance for the months ahead, saying that fourth quarter performance would be similar to the third quarter, with revenues of $6.30 billion to $6.50 billion.
The results were powered by Windows 2000 sales, which have finally built steam as corporations start deploying the platform after more than a year of evaluation.
Microsoft said revenues in its desktop platforms business, which includes Windows 2000 rose 16.3 per cent to $2.05 billion.
Microsoft's huge stash of cash and short-term investments swelled further to $30 billion from $26.9 billion at the end of its second fiscal quarter.