Microsoft sees more buyers step into Office

Software giant Microsoft has posted a big rise in quarterly profits amid signs of a rebound in technology spending by corporate customers.

Revenues hit 10.5bn in the second quarter, an increase of 22 per cent, as profits jumped 48 per cent to 3bn.

The results, which were stronger than Wall Street had expected, were helped by strong sales of Office 2010 as revenues from the company's business software segment rose 15 per cent to 3.5bn.

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Microsoft added that more than 175 million Windows 7 licences had been sold since its launch last year.

It said there were signs that its corporate customers were starting to spend again after billings for its multi-year agreements with big companies increased in the quarter.

While Microsoft has followed chipmaker Intel and Apple in pleasing investors with its second quarter figures, there was no such reaction for online retailer Amazon after its earnings figure came in below expectations.

Revenues were in line with hopes following growth of 41 per cent to 4.3bn, but this was offset by a 40 per cent rise in operating expenses as Amazon earned 135.7m, an increase of 45 per cent.

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The revenues growth came mainly from sales of electronics and other general merchan- dise, which increased 69 per cent from last year to 2.3bn.

Revenues from books, CDs, DVDs and other media rose 18 per cent to 1.9bn.

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