Microsoft Grows Quarterly Revenue by 18 Percent to $20.5 Billion

The software maker's entertainment and devices division reversed an operating loss.

Microsoft posted a double-digit percent rise in both revenue and profit on Thursday and its shares were rising in the after-hours session.

The software maker also said CFO Peter Klein will leave at the end of June and a search is underway for a replacement.

Revenue in the first quarter was $20.5 billion, up 18 percent from $17.4 billion, and net income rose 16 percent to $6.06 billion from $5.11 billion a year earlier.

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The company's entertainment and devices division posted revenue that surged 56 percent to $2.53 billion. It also reported $342 million in operating income, reversing an operating loss of $228 million a year ago.

Microsoft said it sold 1.3 million Xbox consoles, down 9 percent from last year, but Xbox Live members now exceeds 46 million, up 18 percent.

Online advertising grew 22 percent and the company's Bing search engine now boasts a U.S. market share of 16.9 percent.

Microsoft stock shed 4 cents Thursday to $28.79 but was up 76 cents during the after-hours session. Microsoft, though, hasn't participated in a Wall Street rally for the past year, with its shares essentially flat over the past 12 months.