Microsoft reported the FY06 first quarter earnings on Oct 27, 2005. The details of the report can be found at the Microsoft web site.

http://www.microsoft.com/msft/earnings/FY06/earn_rel_q1_06.mspx

Some interesting tid-bits from the earnings

Total revenue increased by 6%. Diluted earnings per share increased by 26%. Where does the increase come from?

The cost of revenue, and spending on R&D, general, administritative has come down. The marketing costs are up by 281 million dollars compared to the same quarter last year. Overall cost is at the same level as last year, thus producing a gain of 15.8% compared to last year. Investment income is up by 229 million dollars. Considering this, earnings are up 24.2%. The rest of the earnings come from the reduced number of outstanding shares - which reduced by 148 million compared to the year ago quarter.

Revenues of different units went up as follows:

client - 7%
server and tools - 12%
information worker - 4%
msn - 1%
mobile devices - 51%
home and entertainment - -17% ( new xbox in the pipeline )
microsoft business solutions - 16%

Total operating income increased by 15.8% - which can mainly be attributed to cost cutting. The rest of the income came by increased investment gains and reduced number of outstanding shares.