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imageSAN FRANCISCO: Microsoft on Thursday reported quarterly profit slipped as lifestyles continued to shift from personal computers to mobile devices and Internet cloud software.

The US software giant said that it made a profit of $5.66 billion on $20.4 billion in revenue in the three months that ended on March 31, a slight dip from the $6 billion in net income it took in on $20.5 billion in revenue during the same period a year earlier.

While down slightly year-over-year, the quarterly earnings figures beat Wall Street expectations, bumping Microsoft shares more than two percent to $40.79 in after-market trading.

"This quarter's results demonstrate the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world," Microsoft chief executive Satya Nadella said in the earnings release.

"We are focused on executing rapidly and delivering bold, innovative products that people love to use."

Nadella added that Microsoft is making progress in the increasingly important consumer market with services such as its Bing search engine and Office 365 Home suite of programs hosted in the Internet cloud.

Companies in the business software market that has long been Microsoft's strength are also being won over to its cloud offerings, said Nadella.

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