Despite a tough PC market and not much upwards movement in the mobile sector, Microsoft has managed to beat expectations with a record quarter.

344149 Microsoft has record quarter despite Surface and Windows follies

Microsoft posted its first quarter earnings late Thursday, and to the surprise of analysts it beat many of their expectations.

The company reported that its profit increased by 17 percent to $5.2-billion on $18.53 billion of revenue from $4.5-billion on $16.01 billion of revenue during the same quarter last year.

Microsoft says the strong quarter is largely because of increased sales of Office and solid performance of its cloud services division — which saw an increase in revenue of 103 percent.

Revenue from the Windows OEM licensing dropped by 7 percent.

Microsoft also reports that revenue from its Surface division increased by $400 million this quarter, but considering the company’s past history with reporting Surface numbers this claim should be met with a skeptical eye. It reports that that the new Devices and Consumer division, which encompasses Surface and Phone division had $7.46 billion revenue for its first quarter.

Bing, its struggling search engine, also saw its revenue increase by 47 percent due to an increase in search volume and revenue per search.

It should be noted that Microsoft’s reorganization might mask how each individual segment of the company is doing by clumping so many into divisions then reporting earnings on each division.

Source: Microsoft