Article: Microsoft Defies PC Downturn.(Company Financial Information)

Microsoft made a silk purse out of a sow's ear in the March quarter, inching by analysts estimates despite a horrid PC market that Microsoft execs think won't get better any time soon, but may have bottomed out.

Redmond's secret - or salvation depending on how you look at it - was an increasingly rich mix of Win2K Professional on the desktops that were sold. It meant higher average ASPs that saved the quarter. By the time everything was toted up, Microsoft said, Win2K Pro revenues were up 40% and Win2K Pro and NT 4.0 accounted for 35% of all desktop sales, up 9% year-over-year. In contrast to Win2K Pro, sales of Win9x/ME were flat, Microsoft said.

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