Microsoft Corporation announced last night that its quarterly profit rose 10 per cent, topping Wall Street estimates as gains on the software giant's huge investment portfolio offset lacklustre performance in operations. The company said profits rose to $2.41 billion (€2.6 billion) or 44 cents a share form $2.2 billion or 40 cents a share a year earlier.

Revenues also met expectations at $5.8 billion, compared to $5.76 billion a year earlier. Most analysts had trimmed their revenue forecasts for Microsoft after the company warned last quarter that business demand for personal computers looked weak. Microsoft also recorded $1.13 billion in income form gains on investments, meaning its net operating profit was $2.52 billion. A year earlier, investment gains were $485 million, while operating income was $2.9 billion.