Microsoft story updated with analyst commentsNEW YORK ( TheStreet) -- Microsoft ( MSFT) beat first-quarter earnings estimates by a wide margin Thursday afternoon, boosted by strong sales of its Windows 7 operating system, Office 2010 and Xbox 360. Profit rose to 62 cents per share, up from 41 cents a year ago. Analysts had predicted Microsoft would post a profit of 55 cents a share.
Microsoft's Kinect add-on for the Xbox is also expected to be " the gift this holiday season," Klein said. Some investors expressed frustration with Microsoft's online business that includes MSN and its search engine Bing. The segment posted an operating loss of $560 million, which is 17% higher than its $474 million loss during the same period last year. "The online business is a disaster," said Dave Stepherson, vice president at Hardesty Capital Management in Baltimore, which owns 288,000 shares of Microsoft. "Microsoft is absolutely struggling to tread water against Baidu and Google ( GOOG). The company thought online would be a growth driver, but there's nothing there." Stepherson was also skeptical that Microsoft's mobile business could compete with the iPhone and Android. Microsoft released its Windows Phone 7 in Europe and Asia on Oct. 21, and will launch the device in the U.S. and Canada Nov. 8. "Microsoft has been trying to get into that consumer area and they're failing at every opportunity, with the exception of the Xbox," he said. "The last really cool product they came out with was Windows 95." --Written by Olivia Oran in New York. >To follow the writer on Twitter, go to http://twitter.com/Ozoran. >To submit a news tip, send an email to: email@example.com.
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