Microsoft posted earnings for the fourth quarter of its fiscal year: Up 7%, based on Office products, and a fair PC market.

net profit was $3.04 billion, or 31 cents per diluted share, in its fiscal fourth quarter, up from $2.83 billion, or 28 cents per diluted share, a year earlier. Sales rose 13 percent to $13.4 billion.

Despite the $1.15 Billion costs this quarter to deal with Xbox warranty issues,

Microsoft said it still aims for its entertainment and devices division to turn profitable in fiscal 2008, with a boost expected from the September release of "Halo 3," the latest installment of one of the best-selling game franchises.

The company said the Microsoft Business division, home to its Office business, posted a 19 percent rise in revenue to $4.63 billion, exceeding its sales expectations by $200 million on the back of Office 2007 demand.

Pretty sure this has been the backbone of Microsoft along with Windows for quite some time, but I could be wrong.

Its online services group notched a third-straight quarter of revenue growth with an increase of 19 percent from a year earlier, boosted by a 33 percent rise in Web advertising.

The article notes that Google's growth was 58% over the same period. BTW, a man named Jim goaded me into post this. I think Jim works at Microsoft, but again, I could be wrong. [Yahoo]

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