Microsoft reports mixed results

Mixed results for Bill Gates

Microsoft has seen its quarterly sales figure increase to $10.15bn (£5.5bn).

The computer giant said the record new high - a 19% increase on the previous year - was driven by strong PC sales to both the home and business sectors.

Yet at the same time Microsoft saw its profits fall 17%, after it was forced to pay a number of stock charges.

The firm, reporting its second quarter to 31 December, says it now expects to see strong computer and software sales continuing into 2004.

"Consumer and corporate demand for PCs continued to exceed our expectations and resulted in solid double-digit revenue growth for Windows XP and Office products," said John Connors, Microsoft chief financial officer.

Legal rumblings

Mr Conners added that in the business sphere the increased demand was boosting sales of both desktop and server products.

Microsoft's sales may be marching again, but the company is also once more facing allegations of anti-competitive behaviour.

Despite reaching a deal with federal antitrust authorities in 2002, the US state of Massachusetts said earlier this month that Microsoft still engages in "troubling" practices.

The 2002 deal may not be adequate to rein in Microsoft, Massachusetts Attorney General Thomas Reilly said.