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Microsoft reported quarterly profits of 47 cents per share this afternoon, beating by 3 cents the average consensus of Wall Street analysts polled in advance by Thomson Financial. Its revenues were roughly in line with expectations, at $14.45 billion.

The company also gave its first peek at its next fiscal year, which starts in July, saying it expects overall revenue between $66.9 billion and $68 billion, and earnings per share of $2.13 to $2.19. Both ranges are above the average of analysts' long-range forecasts.

Check back for more notes on the results as the afternoon unfolds, including a division-by-division breakdown and other details. Microsoft's call with analysts begins at 2:30 p.m.

Update, 2:25 p.m.: Windows didn't do as well in the quarter as the company had hoped. Digging into the numbers, Microsoft saw a larger decline in revenue than it expected Client division, home to the PC Windows business. The company had predicted a decline in revenue of 18 percent to 20 percent. (Some decrease was seen as inevitable because the same quarter last year included the Windows Vista launch, boosting sales.) As it turned out, revenue in the division declined 24 percent, to $4.025 billion.

Microsoft's Entertainment & Devices Division posted an $89 million operating profit. The company said cumulative Xbox 360 sales rose to more than 19 million during the quarter. Does the operating profit mean that the company is no longer losing money on the Xbox 360 hardware?

Colleen Healy, Microsoft's general manager of investor relations, didn't answer that question directly when I asked this afternoon. However, she said, "What I can confirm for you is we're making really good progress on that cost curve."

Here's Microsoft's 10Q filing with more details of the quarter.

Update, 4:05 p.m.: Microsoft shares are down about 5 percent in after-hours trading. Apart from the worse-than-expected Windows revenue decline, investors may be looking at the company's earnings forecast for the current quarter (ending June 30) -- which, at 45 cents to 48 cents per share, is largely below the 48 cents per share that analysts had been projecting. In addition, the revenue growth in Microsoft's Online Services Business was 40 percent, at the low end of the range the company had given previously.