Microsoft has released an exceptionally strong set of second quarter results, on the back of growth in the company's Windows and Entertainment divisions. Depending on how you do the accounting—and Microsoft reports it two ways this time—Microsoft either saw a slight drop in profit or a jump. Either way, the company's revenues were up, and the big story is that Kinect had quite a bit to do with it.

"We are enthusiastic about the consumer response to our holiday lineup of products, including the launch of Kinect. The 8 million units of Kinect sensors sold in just 60 days far exceeded our expectations," said Peter Klein, chief financial officer at Microsoft in a statement.

The company's Entertainment & Devices Division saw a whopping 55 percent growth, as Kinect goosed sales of Xboxes, Live subscriptions, and games. On the earnings call, Microsoft claimed that Kinect is the fastest-selling consumer electronics device in history, and predicted that Entertainment & Devices revenue will see another 50 percent growth in this quarter.

Kinect was by no means the only winner, though. Office had another good quarter, with Office 2010 powering the company's Business Division to 24 percent year-over-year growth. Microsoft claims that Office 2010 sales have beaten Office 2007 sales over an equivalent post-launch period by 50 percent.

Windows 7 is also doing well, with 300 million licenses sold. Microsoft reports that its newest OS is running on 20 percent of Internet-connected PCs. The software maker cited IDC data that 90 percent of companies have started migrating to Windows 7.

Microsoft also used the earnings call to talk a bit about Windows Phone 7, repeating its assertion from CES that the device's consumer satisfaction numbers are sky-high. The company claims 93 percent customer satisfaction and strong developer engagement, and it reiterated that it's committed to the product's long-term success.

Consistent with what other tech companies have reported in recent quarters, sales in emerging markets are outpacing those in developed markets. Business spending is also rebounding, and Microsoft says that business PC purchases outpaced consumer purchases last quarter. The company expects that the business PC refresh cycle will continue, that IT expenditures will continue to grow, and that the business market will continue to beat the consumer market in PC sales.

Netbook sales declined, while laptop notebook growth remained strong. In the Q&A, the company indicated that some of the decline in netbook sales could be attributed to cannibalization from ultraportables and tablets, but declined to elaborate further.

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