26 Jan 2013

Microsoft profits down

8:09 am on 26 January 2013

A fall in profits has been reported by Microsoft despite a boost in sales of the new Windows 8 operating system.

Net profit for the final three months of the year was $US6.4 billion, down 4% from a year earlier, while revenue was up 3% at $US21.5 billion.

The Windows arm of the company performed well, with revenues up by a quarter.

But the BBC reports much of Microsoft's revenue growth was eaten by an increase in spending on sales and marketing.

And stronger earnings at the Windows division were partly offset by a decline in sales of the company's Office products.