Microsoft has posted record revenues – but with profits down – for its second quarter and could have performed even better if it hadn't deferred Vista and Office 2007 upgrade sales. 

The Redmond-based software giant announced Q2 revenues of $12,54-billion, 6% up on the same period last year, but a drop of 28% in net income to $2,63-billion.
But if Microsoft hadn't deferred $1.64-billion for Vista and Office 2007 upgrade coupons that customers are expected to redeem in Q3, revenues would have been up to 20% higher.
Analysts say that the deferrals give a good indication of what the early uptake of Vista is expected to be.
For Q3, Microsoft says it is expecting revenues of between $13,7-billion and $14-billion.