Google and Microsoft see a jump in profits

During first three months Google's net profit $3.35 bn and Microsoft's net profit $6 bn.

Technology giants Google and Microsoft have both reported rising profits.

Google's net profit climbed to $3.35bn (£2.19bn) in the first three months of the year, up 16% from a year earlier, boosted by online advertising revenue.

Microsoft said it made $6bn in profit during the same period, a jump of more than 17% from a year ago.
Its earnings, which beat market forecasts, came despite a lukewarm reception for Windows 8 and a decline in global PC sales during the period.

Analysts said that Microsoft's profits were boosted in part by changing the way its sold its products to corporate clients, as well as cost-cutting measures.

"Microsoft has successfully transitioned into an enterprise software company and these results show that," said Kim Caughey Forrest, a senior analyst at Fort Pitt Capital.

"The strength of server and tools, and the actual way they sell licenses to business, is making up for the missing PC sales.

"The margins are fantastic and the online services division seems to lose less money each quarter," she added.

Meanwhile Google's profits were driven up by growing income from online advertising, which helped boost overall revenues to nearly $14bn for the quarter. That is up from $10.7bn during the same period last year.

The results also suggested that Google may be beginning to build confidence with advertisers. The amount paid per advert is still declining, but at a slower rate than last year.
Source: BBC Posted by Unknown 4/19/2013