Revenue was $9.19 billion, up 12 percent over $8.22 billion a year earlier.
Analyst Jamie Friedman with Fulcrum Global Partners said the company's quarterly numbers looked fairly strong overall but said Wall Street would likely be concerned about the company's unearned revenue figures.
The numbers, which reflect contracts that are signed but not entirely recognizable as revenue immediately, declined more sharply than he expected. That raises concerns that the company doesn't have enough major new products in the works to lure corporate customers into renewing long-term contracts.
Microsoft doesn't expect to ship a new version of its dominant Windows operating system until 2006, and the next big upgrade for its server product isn't expected until 2007.
"The company looks like it needs products,'' he said.
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