THE NUMBERS: Microsoft beat Wall Street expectations for the fiscal first quarter. Net income rose 16 percent to $5.4 billion, or 62 cents per share, excluding the impact of revenue deferrals last year. Revenue increased 25 percent to $16.2 billion.
THE PERFORMERS: Sales of Windows, Office and server software to businesses helped bolster results. Businesses are spending on technology after clamping down on budgets during the economic downturn.
THE HOLIDAYS: Microsoft is betting Kinect, an add-on for Xbox 360 that can read body movements, will be a hot gift _ and push revenue for the division that makes it up 30 percent from a year ago.