SAN FRANCISCO - Despite better-than-expected revenue in the fourth quarter, Microsoft's (MSFT) - Get Report bottom line and cautious guidance disappointed the Street Thursday.

Revenue at the Redmond, Wash. software giant grew 18.4% to $15.84 billion, from $13.37 billion in the same quarter of last year. Analysts were expecting a top line of $15.65 billion, according to Thomson Reuters.

Net income rose to $4.3 billion or 46 cents a share, vs. $3 billion, or 31 cents a share in the year-ago period. Analysts had been looking for a net of $4.45 billion and EPS of 47 cents.

Shares were down $1.52 cents, or 5.52%, to $26 in extended trading.

For the first quarter of fiscal 2009, the company projected revenue of $14.7 billion to $14.9 billion and EPS of 47 cents or 48 cents. Analysts were expecting revenue of $15 billion and EPS of 49 cents.

Microsoft said full-year revenue would range between $67.3 billion and $68.1 billion. EPS will be from $2.12 to $2.18. Analysts were projecting a top line of $67.3 billion and EPS of $2.16.

IBM

(IBM) - Get Report

and

Google

(GOOG) - Get Report

also posted earnings reports late Thursday.

Yahoo!

(YHOO)

continued Thursday to try to derail a proxy fight that could mean the ultimate sale of that company to Microsoft. The board sent a letter to Yahoo! shareholders saying the alliance between investor Carl Icahn and Microsoft was not in stockholders' best interests.