Microsoft announced revenue of $15.06 billion for the fiscal quarter ended Sept. 30, 2008, a 9% increase over the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $6.00 billion, $4.37 billion and $0.48, respectively.

Microsoft showed particular strength in multiyear annuity sales, which grew more than 20% during the quarter from the combined businesses of Client, Microsoft Business Division and Server and Tools.

Microsoft SQL Server 2008, Microsoft Hyper-V Server 2008 and the first service update to Microsoft Dynamics CRM Online are among the key product and services that helped Microsoft report a strong 1Q.

Microsoft?s business outlook reflects a balance of risks and the likelihood of a continued economic slowdown. The trends seen late in the first-quarter are now forecasted to continue, whereas previous expectations were for the economy to improve in the second half of the fiscal year.

In this economic environment, Microsoft said that it was focused on three main actions; working with customers to provide high value products at the lowest total overall cost of ownership, increasing focus on expense management and targeting investment into the highest priority strategic opportunities.

Microsoft management offers the following guidance for the quarter ending Dec. 31, 2008:

- Revenue is expected to be in the range of $17.3 billion to $17.8 billion.

- Operating income is expected to be in the range of $6.1 billion to $6.4 billion.

- Diluted earnings per share are expected to be in the range of $0.51 to $0.53.

Management offers the following guidance for the full fiscal year ending June 30, 2009:

- Revenue is expected to be in the range of $64.9 billion to $66.4 billion.

- Operating income is expected to be in the range of $24.4 billion to $25.5 billion.

- Diluted earnings per share are expected to be in the range of $2.00 to $2.10.