Microsoft has reported that its quarterly profit doubled on stronger demand for personal computers and video games, as well as lower costs.
The Windows operating system developer also raised its outlook for its current fiscal year ending in June, and its shares rose 1.7 per cent in after-hours trade.
Microsoft posted a net profit of $3.46 billion, or 32 cents a share, for its fiscal second quarter ended in December, compared with $1.55 billion, or 14 cents a share, a year earlier.
Excluding stock-based compensation, Microsoft said yesterday it had a profit of 35 cents a share, compared with Wall Street expectations of 33 cents, according to estimates.
Revenue rose 6.6 per cent to $10.82 billion.
Microsoft reported that sales of the video game Halo 2- which totalled 6.3 million copies - for its Xbox game console improved results in its home and entertainment division.
Analysts had been looking for such an improvement, as it could raise prospects for its next generation of Xbox video game consoles, expected by the 2005 holiday season.
Microsoft said that sales of its software for networked computers as well as revenue in its fledgling cell-phone software division also contributed to growth.