Microsoft 1Q Income Up 30%

Strong PC sales, higher penetration of Windows NT on the corporate desktop, and the launch of Office 2000 drove a 30% increase in Microsoft's first-quarter net income, the company reported Tuesday.

Microsoft earned $2.19 billion during its first quarter ended Sept. 30, an increase of 30.2% from the same period last year. Revenue climbed 28.4% during the quarter, to $5.38 billion, compared with $4.19 billion one year ago. And operating income, which excludes a gain on Microsoft's sale of its online MSN Sidewalk city-guide business, rose 37%.

"The PC market remains very healthy," despite fears of overseas component shortages, Microsoft CFO Greg Maffei said during a conference call with analysts yesterday. But he cautioned Wall Street not to factor in an immediate sales spike from the launch of Windows 2000, scheduled to ship to manufacturing by year's end.