4/18/2013 5:56 PM ET

Software giant Microsoft Corp. (MSFT: Quote) said Thursday after the marketsclosed that its third quarter profit rose 19% from last year, helped by revenue growth in all its business divisions, especially Windows and Entertainment & Devices.

The company's quarterly earnings per share also came in above analysts' expectations.

"The bold bets we made on cloud services are paying off as people increasingly choose Microsoft services including Office 365, Windows Azure, Xbox LIVE, and Skype," said Steve Ballmer, chief executive officer at Microsoft. "While there is still work to do, we are optimistic that the bets we've made on Windows devices position us well for the long-term."

Microsoft also said its chief financial officer Peter Klein will leave the company at the end of the current fiscal year, after nearly four years in the role and 11 years at the company. The company said it will name a new CFO from its finance leadership team in the next several weeks.

Microsoft shares are currently gaining 2.29% in after hours trading after closing the day's regular trading session at $28.79, down 3 cents. The shares trade in a 52-week range of $26.26 to $32.89.

Microsoft's two major divisions make the Windows operating system and Office business software. About 90% of the PCs around the world run on the company's windows operating system.

The company has also launched a Windows-based tablet "Surface" in a bid to take on Apple Inc.'s (AAPL) hugely successful iPad.

Microsoft's business division revenue increased 8% year-over year to $6.32 billion in the third quarter. Excluding the impact of the net impact of revenue related the Office upgrade offer and pre-sales, the division's adjusted revenue increased 5% for the third quarter, during which the company launched the new Office.

Third quarter revenue from the company's Windows division surged 23% to $5.70 billion. Excluding the net recognition of revenue for the Windows upgrade offer, the division's adjusted revenue was flat with last year.. h time in the last 7 quarters that the division's revenue has declined year-over-year.

Microsoft achieved this despite the continued softness in demand in the PC market. Earlier this month, industry research firm International Data Corp. (IDC) said global PC shipments in the first quarter of 2013 fell 13.9% from last year to 76.3 million units in the first three months of 2013, the steepest year-over-year decline since the firm began tracking the PC market's quarterly performance in 1994.

Another market research first market research firm Gartner, Inc. (IT) also said worldwide PC shipments in the first quarter fell 11.2% from a year earlier to 79.2 million units, the lowest levels since the second quarter of 2009.

The company's latest operating system - Windows 8 - became generally available on October 26. It is designed to work equally well on touchscreen devices and conventional ones.

Server and tools division's revenue rose 11% to $5.04 billion in the third quarter, driven by double-digit percentage revenue growth in SQL Server and System Center. In September, Microsoft launched Windows Server 2012.

Third quarter revenue from the company's entertainment and devices division jumped 56% year-over-year to $2.53 billion. Excluding the recognition of revenue related to the Video Game Deferral, the division's adjusted revenue increased 33% for the third quarter. Xbox LIVE now has over 46 million members worldwide, an 18% increase from the prior year period.

Online services division revenue for the quarter grew 18% year-over-year to $832 million, while the division's operating loss narrowed to $262 million from $909 million a year ago.

For the third quarter ended March 31, 2013, the world's largest software company reported net income of $6.06 billion or $0.72 per share, compared to $5.11 billion or $0.60 per share for the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to earn $0.68 per share for the third quarter.

The latest quarter results include $1.66 billion of revenue recognized for Windows upgrade offer, office upgrade offer and pre-sales, and video game deferral. The results also include $733 million of European Commission fine that was imposed on Microsoft last month for failing to comply with its commitments to offer users a browser choice screen enabling them to easily choose their preferred web browser.

Excluding the the impact of the revenue recognition and the European Commission fine, adjusted earnings for the latest quarter were $0.65 per share.

Operating income for the third quarter rose 19% to $7.6 billion, while its adjusted operating income rose 5% to $6.7 billion.

Redmond, Washington-based Microsoft said revenue for the third quarter rose 18% to $20.49 billion from $17.41 billion in the same quarter last year. Adjusted revenue for the latest quarter was $18.83 billion. Thirty analysts had a consensus revenue estimate of $20.56 billion for the third quarter.

Adjusting for the European Commission fine, Microsoft revised its fiscal year 2013 operating expense guidance downward to a range of $30.2 billion to $30.5 billion from its prior guidance of $30.3 billion to $30.9 billion.

The company also offered preliminary fiscal year 2014 operating expense guidance of $31.6 billion to $32.2 billion, representing 4% to 6% growth from the mid-point of fiscal year 2013 adjusted guidance.

Microsoft stopped making specific profit or revenue forecasts in January 2009, citing market volatility.

Source: RTTNews