Despite supply problems with its Xbox 360 games console, Microsoft has announced record revenues of $11.84 billion (€9.78 billion) for its second quarter which ended last December.

Revenues grew 9 per cent year on year while profit after tax of $3.65 billion was up 5 per cent from a year ago.

Microsoft also raised its full-year forecasts. It said it expected revenues for the full year to be between $44 and $44.5 billion and operating profit to be in the range of $17.9 to $18.3 billion.

In contrast with chip-maker Intel, which last week reported disappointing revenues that it blamed partly on poor PC sales, Microsoft said sales of its Windows operating system were boosted by "a robust PC market".

Microsoft Ireland's general manager Joe Macri said Irish sales were even stronger than the international performance and, during the 2005 calendar year, revenues grew by 12 per cent. He said revenues for its platform products and services division which sells Windows, server software and IT management tools grew by 16 per cent as Irish businesses were focusing on moving to new platforms and managing their technology more efficiently.

Growth in its information worker group, which sells the company's more mature products such as Office, was lower at 10 per cent but Mr Macri said this group was starting from a higher base. Internationally, this business grew 5 per cent.

In advance of this year's launches of new versions of Windows and Office, Microsoft has increased employee numbers by 13 per cent. Windows Vista and Office 12 will debut towards the end of this year.

The US group employs over 63,000 people worldwide and Mr Macri said Irish employment stood at 1,200, although the number fluctuates based on business cycles. At any time partner companies have between 400-600 staff on site at Microsoft's Irish operations.

Mr Macri said net employment had grown by 100 this year with the addition of a research and development centre at its Sandyford campus in Dublin, which is working on the integration of digital terrestrial television for the version of Windows Media Centre which will be released after Vista.

Microsoft also has a European Product Development Centre in Ireland which is involved in the localisation of 100 products in 27 different languages.