"The business PC refresh cycle has accelerated and we recorded the second straight quarter of double-digit license growth," he said.
Although the company launched its Windows Azure cloud computing service earlier this year, Microsoft does not expect to see notable revenue from the service in the upcoming fiscal year, Klein said.
Azure "is not material to the financials now, but we're really establishing a leadership position," he said.
While Klein did not mention the upcoming release of the Kinect Xbox hands-free controller by name, he did note that the Entertainment and Devices Division would see second-quarter revenue growth in the mid-teens, percentage wise, thanks to a "compelling wave of consumer offerings coming to market," of which Kinect no doubt would be one component. In the fourth quarter the division generated $1.6 billion in revenue, though it actually lost $172 million.