Questions Linger Despite Microsoft's Strong Results

Updated from 9:47 a.m. EST

Analysts remained upbeat about Microsoft Friday, saying stronger-than-expected 19% revenue growth in the fiscal second quarter should outweigh a disappointing decline in deferred revenue, as reported by the software behemoth after the close Thursday.

Similarly, after digesting the numbers a little more -- particularly the larger-than-expected $395 million drop in deferred revenue -- investors seemed to be more encouraged by the results. After declining in after-hours trading Thursday, Microsoft shares rebounded Friday, climbing recently 73 cents, or 2.5%, at $28.74. ...