Microsoft's Vista sales boost 3Q profit

Windows Vista buoyed Microsoft Corp.'s quarterly results, easing fears that the new operating system is too pricey, requires too many hardware upgrades and doesn't work with other companies' applications.

For the quarter ended March 31, Microsoft's profit jumped 65 percent to $4.93 billion, or 50 cents per share, from $2.98 billion, or 29 cents per share, in same period last year, boosted by sales of Vista and Office 2007, and by upgrade coupons issued over the holidays.

Excluding one-time items, profit totaled 49 cents per share, ahead of Wall Street's view for 46 cents per share, according to Thomson Financial.

Shares rose $1.20, or 4.1 percent, to $30.30 in extended trading after the results were released Thursday. The shares had gained 11 cents to close at $29.10 on the Nasdaq Stock Market.

Revenue for the fiscal third quarter rose 32 percent to $14.4 billion. Analysts were looking for $13.89 billion in sales.