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Peter Klein, Microsoft CFO.
Peter Klein, Microsoft CFO.

Microsoft this afternoon reported profits of 72 cents per share, an increase of 20 percent, beating Wall Street’s estimates by 4 cents when including revenue that was deferred from previous quarters because of accounting rules related to promotions for Windows 8 and other new products.

Separately, Microsoft said its chief financial officer, Peter Klein, is leaving the company after four years in the job and 11 years with the company. Microsoft didn’t give a reason for the departure, but said it will name a new finance chief from its existing ranks of financial executives.

Not including revenue deferred from previous quarters, revenue in the company’s Windows division was flat at $4.6 billion compared to the same quarter a year ago. Subtracting out the deferred revenue in that way gives a more accurate glimpse of how the Windows business did for the quarter. Accounting rules required Microsoft to wait to recognize revenue from Windows 8 advance upgrade promotions until the new operating system was on the market.

The flat result in the Windows business could have been worse: A recent report from IDC said that PC shipments slipped 14 percent in the first quarter.

Elsewhere across Microsoft’s business, revenue was up 11 percent to $5 billion in the company’s Server & Tools Division. Entertainment & Devices, home to the Xbox business, posted revenue of $2.15 billion, up 33 percent, not including revenue deferrals. The Microsoft Business Division, home to Microsoft Office, saw a revenue increase of 5 percent, to $6.1 billion, not including revenue deferrals.

Revenue rose to $832 million in Microsoft’s Online Services Division, from $707 million in the same quarter a year ago. The online division’s operating loss narrowed to $262 million, from a loss of $480 million previously. Online Services was Microsoft’s only unprofitable division for the quarter.

Microsoft’s conference call with analysts begins at 2:30 Pacific time.

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