The theme: Consumer business grows stronger; enterprise remains soft.

For the first quarter, Microsoft (NASDAQ:MSFT) earnings jumped 28% year over year to $2.61 billion, or $0.24 per share, as sales grew 6% to $8.2 billion. Compensation expense shaved $0.06 off the bottom.

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 (NASDAQ:INTC), Hewlett-Packard (NYSE:HPQ), and Dell (NASDAQ:DELL). Meanwhile, the company's MSN Internet division turned in its first-ever quarterly profit, as advertising revenue grew 50%, not unlike what we saw in Yahoo!'s (NASDAQ:YHOO) report.

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 (NYSE:SNE), Dell, and Gateway (NYSE:GTW) to dominate our living rooms in one package.

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