The theme: Consumer business grows stronger; enterprise remains soft.
For the first quarter, Microsoft
The company, which announced it would double its dividend last month, added another $2.5 billion in cash to its balance sheet, leaving it with $51.6 billion in pocket change.
Driving the growth was a 14%-16% increase in worldwide PC shipments, much to the pleasure of Intel
At the same time, Microsoft is taking greater control over our homes. As the holiday season approaches, home and entertainment sales grew 19.8% to $581 million, mostly due to the Xbox. Last month, the company teamed up with computer manufacturers including Hewlett-Packard, Sony
But let's not forget: Corporate spending remains soft. Unearned revenue -- recognized on the balance sheet but not the income statement -- declined $768 million, much more than the $200 to $300 million expected, possibly on concerns over security issues.
Talk about a mixed bag. Excitement surrounding the consumer businesses helped Microsoft raise its full-year outlook, while the steep decline in deferred revenue adds an air of caution.
Caution wins the day. Shares of Microsoft are down over 8% to $26.55 midday.
Jeff Hwang can be reached at JHwang@fool.com.