Vista delay hits Microsoft profit

Microsoft's new operating system is keenly awaited

The much-delayed launch of the Windows Vista operating system has hit second quarter profits at Microsoft, which has reported a 28% drop in earnings.

The world's largest software maker said net profit in its second financial quarter, to 31 December, was $2.63bn - from $3.65bn a year before.

However second-quarter sales rose 6% to $12.54bn from $11.8bn.

It has deferred more than $1bn in sales from new upgrades of its Windows and Office software.
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