A Microsoft's fact

Microsoft's Windows 7 has sold a record-breaking 240 million copies since its launch a year ago and its Office suite of applications, which debuted this spring, is off to a strong start.

"The reports of the death of Windows and Office are premature -- the company is still a cash flow machine," said Colin Gillis, an analyst at BGC Financial. "People are buying about $10 billion worth of Windows and Office this quarter. The twin engines of Microsoft are still firing."

Between them, the Windows and Office units accounted for more than 60 percent of sales and more than 80 percent of profit, factoring out nonoperating losses.

Wall Street generally expects Windows and Office sales to track sales of PCs, suggesting growth of about 7 percent in the current quarter.