An anonymous reader writes "Despite reports, it seems Microsoft is not only alive, but has been thriving these last few months. Following Apple's solid earnings yesterday comes above-expectation reporting from Microsoft. Profits jumped 65% from the previous year, and sales of its Windows operating system were strong: 'Microsoft said it deferred $1.2 billion in Windows Vista revenue to the third quarter, to account for upgrade coupons given to PC buyers during the holiday season before the consumer launch of the new operating system. Excluding this figure, client revenue totaled $4.1 billion, 30 percent higher than last year.' Microsoft Chief Financial Officer Chris Liddell said Vista beat internal forecasts by $300 million to $400 million, and Office 2007 sales were $200 million better than expected."