Microsoft has posted increased third-quarter profits after being boosted by the sale of Expedia. However, the company expects IT spending among business customers to be "quite modest" over the short-term. However, the company expects IT spending among business customers to be "quite modest" over the short-term.
It also warns that 2003 earnings and sales will fall short of current Wall Street estimates.
For the three months to March, the company posted net income of 49 cents a share, or $2.74 billion (£1.89 billion).
This is up from $2.45 billion (£1.69 billion), or 44 cents per share last year.
The figure was increased by the $847 million sale of its online travel operation Expedia to media firm USA Networks.
Sales came in at $7.25 billion (£5 billion), up from $6.4 billion (£4.42 billion).
Chief financial officer Mr John Connors says: "While we look forward to slightly improved PC growth rates for the next quarter, our expectations for enterprise IT spending levels continue to be quite modest."
The company expects to earn between 41 and 42 cents a share in the current quarter, on sales of between $7 billion and $7.1 billion.
For the financial year 2003, it expects to post profits of between $1.89 billion and $1.92 billion, on sales of between $31.5 billion and $32.4 billion.
PA