Microsoft Profits Surge to $3.46 Billion

The numbers are in and Microsoft has netted a total of $3.46 billion in the second quarter out of gross revenues of $10.82 billion. That gross is a record for Microsoft and a 7 percent increase over the previous second quarter results last year, when the company expensed employee stock options.

Notably, the Home and Entertainment division -- which produces the Xbox game console -- has broken even, narrowing down its losses to just two divisions out of seven that are profitable. Unearned revenue from licensing contracts was a key contributor and accounted for $3.2 billion of the quarter's revenue.