Microsoft (MSFT: chart) said net income climbed to $2.56 billion, or 23 cents a share, in the fiscal 3Q ended March 31, including a charge of five cents a share for legal costs and a charge of four cent a share for equity compensation.

Sales advanced 5% to $9.62 billion from $9.18 billion. The latest quarter's revenue was below analysts' forecast of $9.83 billion mainly due to a surprise surge in the value of the dollar vs. major currencies.

Looking ahead to the year ending June 30, 2006, Microsoft said it expects revenue to be in a range of $43.3 billion to $44.1 billion, or a jump of 9% to 11% from fiscal 2005. Analysts had forecast sales of $43.4 billion for the year. Microsoft said it forecasts profits for the full year will reach $1.26 to $1.30 a share, including equity compensation-related expenses.

The Frankfurt-based Deutsche Bank AG (DB: chart) reported a 17% jump in 1Q net income on strong bond-trading revenue, according to analysts.

The bank's strong performance in the quarter also was bolstered by cost cuts and made it possible to meet the bank's full-year forecast of a 25% return on equity.

Net profit rose to 1.1 billion euros ($1.4 billion), or 2.09 euros a share, from 941 million euros, or 1.67 euros a share, a year earlier. The bank released preliminary figures Thursday and was to report full earnings Friday.

Poway, California-based Gateway Inc.'s (GTW: chart) loss narrowed in spite of the slight revenue drop as the computer maker closed retail stores and cut down on expenses. Gateway posted a 1Q net loss of $5.2 million, or a penny a share, vs. a loss of $168.7 million, or 51 cents a share, in the year-before period. Revenue slid 3.5% to $837.8 million from $868.4 million in the same quarter last year.

The company said sales of PC units climbed 56% from a year earlier to 941,000; sales of notebook computers grew 72% from last year.

Gateway didn't immediately make a 2Q forecast. Analysts expect it to earn one cent a share, excluding items, on $864.4 million in revenue.

Toshiba Corp. (TOSBF: chart) said its net profit dropped 49% from a year earlier in the January-March quarter on a plunge in its semiconductor business and price competition for digital goods and home electronic appliances. For the full fiscal year earnings advanced 60% to some extent because Toshiba's personal-computer business swung to profit on cost cuts and increased sales of new models.

Toshiba reported quarterly profit sank to 36.09 billion yen ($341.4 million), from 70.25 billion yen a year earlier. Revenue rose 2.2% to 1.684 trillion yen from 1.647 trillion yen.

For the year, Toshiba's net profit climbed to 46.04 billion yen from 28.83 billion yen, although profit at Toshiba's mainline semiconductor business sank 30% to 82.7 billion yen. Revenue surged 4.6% to 5.836 trillion yen from 5.58 trillion yen.

Toshiba forecasts a 9.3% fall in operating profit to 75 billion yen.

The broadcaster Sirius Satellite Radio Inc. (SIRI: chart) reported a wider loss for 1Q as higher programming and marketing costs shadowed sound jump in revenue and new subscribers. The company boosted revenue and subscriber-growth guidance for the full year.

The New York company posted a quarterly loss of $193.6 million, or 15 cents a share, compared with a loss of $144.1 million, or 12 cents a share, a year ago. Revenue was $43.2 million, up from $9.3 million a year earlier. Analysts were expecting losses of 15 cents a share on sales of $40.5 million.

Sirius said it expects to generate $215 million of total revenue in 2005, up from its previous outlook of $210 million, due to the increased subscriber growth. Analysts are predicting 2005 revenue of $218.2 million.

ABB Ltd. (ABB: chart) reported a better-than-expected jump in 1Q profit, but higher raw-material prices made the Swiss electrical-engineering company abandon an ambitious margin goal for its power-technology unit.

Net income surged to $199 million (ˆ153.8 million) vs. $1 million due to higher sales, cost cutting, and lower charges from discontinued operations that reflected upon last year's results. The figure beat expectations of a net profit of $105 million. Sales increased 12% to $5.1 billion, bolstered by sharp increases in Asia, the Middle East and Africa.

Eastman Chemical Co. (EMN: chart) posted $1.76 billion in sales revenue for the first quarter, a 10% increase from same period last year. The chemicals, fibers and plastics manufacturer announced earnings of $2 a share for 1Q 2005 from a loss of 7 cents a share last year.

Net income was $162 million in the quarter ended March 31. In the year-ago quarter, Eastman posted a loss of $6 million. Earnings excluding items were $1.92 a share in the latest quarter versus 52 cents a share a year ago. Analysts expected the company to post earnings of $1.24 a share.

Eastern Chemical said it forecasts 2Q earnings per share to be similar to 1Q results. Analysts’ earnings estimate for 2Q is $1.37 a share.