Microsoft has given a positive outlook for the upcoming business year despite failing to meet its own and Wall Street revenue targets.
Quarterly profit nearly doubled as legal costs fell dramatically, and sales of server software for networked computers and the Xbox video game console stood out in the latest quarter.
Microsoft is set to unveil the next generation of its Xbox console on May 12th on MTV, and the company gave details this week of a major upgrade to Windows, code-named Longhorn, that is due out in 2006.
The world's largest software maker reported net profit nearly doubled to $2.56 billion, or 23 cents a share, for its fiscal third quarter ended March 31st, from $1.32 billion, or 12 cents a share, a year earlier.
The latest quarter included a $768 million legal charge for an antitrust settlement with computer maker Gateway and as a reserve for ongoing antitrust claims.
Revenue rose to $9.62 billion from $9.18 billion but was short of the average outlook for $9.8 billion, according to analysts' forecasts compiled by Reuters Estimates.
For the latest quarter, excluding the legal charge and stock-based compensation, Microsoft said it earned 32 cents a share, in line with Wall Street targets.