<p>Microsoft announced its earnings for Q3 FY13 and posted encouraging growth in Microsoft Microsoft Office division. The quarter was a solid one on most fronts as total revenues increased to $18.8 billion during the quarter, 8% higher than the $17.04 billion the company posted during the same period last year. Operating income increased 5% to $6.7 billion year-over-year.</p><p>In our pre-earnings article we noted that the Windows OS division would be negatively impacted due to weak PC shipment number for Q1CY13. Microsoft felt the heat from declining PC sales as its Windows division revenues were flat y-o-y at $4.61 billion, excluding Windows deferral of $1.09 billion. While OEM Windows revenues were in line with the declines in the PC market, non-OEM revenues, which includes the sales of Surface tablet and commercial sale of Windows were up 40% and offset the decline in OEM sales. However, we are encouraged by the adoption of Office 365 which now has a revenue run rate of $1 billion. We expect Office will continue to drive revenue growth at Microsoft going forward.</p><p>Check out our complete analysis of Microsoft</p><p>Cloud Based Office 365 Bolster Revenues</p><p><a href="http://www.forbes.com/sites/greatspeculations/2013/04/19/microsoft-shakes-off-pc-slump-as-office-and-servers-sales-swell/">Keep reading...</a></p><p>Read also:</p><p><a href="http://www.informationweek.com/software/windows8/microsoft-office-server-sales-fuel-stron/240153251">Microsoft Office, Server Sales Fuel Strong Earnings</a> (InformationWeek)</p><p><a href="http://www.mspmentor.net/2013/04/18/microsoft-office-365-1-billion-reasons-you-cant-ignore-it/">Microsoft Office 365: $ 1 Billion Reasons You Can't Ignore It</a> (MSPmentor (blog))</p><p><a href="http://www.businessinsider.com/microsoft-finally-reveals-how-well-its-google-apps-killer-cloud-is-doing-2013-4">Microsoft Finally Reveals How Well Its Google Apps-Killer Cloud Is Doing</a> (Business Insider)</p><p>Explore: <a href="http://news.google.com/news/more?ncl=dtIdOydXQ_MrT1MHqbmrH3pndIYsM&ned=us">434 additional articles.</a></p>