Microsoft Fourth Quarter Beats Estimates

NEW YORK (TheStreet) -- Microsoft(MSFT) has announced record fourth-quarter revenue of $16.04 billion for fourth quarter, a 22% increase from the same period of the prior year.

Operating income, net income and diluted earnings per share for the quarter were $5.93 billion, $4.52 billion and 51 cents a share, which represented increases of 49%, 48% and 50%, respectively, when compared with the prior year period.

Analysts on average were expecting earnings of 46 cents on revenue of $15.27 billion.

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The company said that the quarter's record revenue reflects product momentum continued during the quarter with the successful launch of Office 2010 and strong performance from existing products including Windows 7 -- which has sold more than 175 million licenses to date; Windows Server; Xbox; and Bing, which achieved its 13th consecutive month of share gain.

Also, Microsoft said that its transition to cloud services is well underway with offerings like Windows Azure and our Business Productivity Online Services, and that the company looks forward to continuing its product momentum this fall with the upcoming launches of Windows Phone 7 and Xbox Kinect.