Software giant Microsoft said that its third-quarter net income fell 32 per cent on weakness in the global personal computer and server markets.

Some of the loses were because Redmond recorded $710 million in charges as a result of its restructuring. Chief Financial Officer Christopher Liddell said Microsoft expected market conditions to remain weak "through at least the next quarter" with the business market taking he biggest hit.

The figures were in line with analyst expectations so there was nothing to see here move on please. Although a third of a fall is a lot of dosh, given the economic situation Microsoft's profits are still huge. For the quarter ended March 31, the company reported net income of $3 billion down from $4.39 billion a year earlier.

Sales at Microsoft's client division, which makes the Windows operating system, fell 16 per cent while earnings decreased 19 per cent. Revenue at the company's server and tools division rose 7.1 per cent, while sales at the business division slid 4.8 per cent. Online services decreased 14 per cent. At the entertainment and devices division, sales fell 1.6 per cent.