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Microsoft Surprises With Surface Sales Growth

Sales of Microsoft's Surface tablets reached $400 million in the first fiscal quarter, the company said Thursday, providing some evidence that the often-maligned devices may be gaining some market traction.

Microsoft reported overall sales growth of nearly 16 percent to $18.53 billion for the quarter and 11 percent growth in profits to $5.24 billion. The results included solid growth in the company's enterprise software business and high renewal rates for Enterprise Agreement volume licensing contracts.

But it was the Surface sales that surprised. Microsoft sold twice as many Surface tablets in the quarter as in the previous quarter, CFO Amy Hood said during Thursday's earnings call, the first time Microsoft has broken out sales data for the tablet devices. While the Surface Pro seemed to be more popular, Hood said Surface RT sales also did "quite well" in the quarter. All this indicates Microsoft has some momentum heading into the crucial holiday season.

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