From ArsTechnica:

Microsoft reported third-quarter results last night, and the numbers just weren't that great.

By the numbers

Sales showed infinitesimal improvement over last year, moving from $14.4 billion to $14.45 billion. $0.47 a share in adjusted net income was a happier story, compared with $0.38 a year ago. Management took great pains to remind us that the year-ago quarter was the launch period for consumer-level Vista versions, so the comparisons should be tough.

With that in mind, the server software division showed some improvement while consumer software sales and profits slowed down a bit. The entertainment segment, while still very small in the grand scheme of things, boosted revenue by an impressive 68 percent year over year and actually turned a small ($89 million) operating profit. That's a rarity in this holiday-light reporting period.

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