Excluding charges related to stock-based compensation, it earned $2.62 a share, well above analysts' estimate of $2.42.

Excluding acquisition-related charges and stock-based compensation, the company had a profit of $412 million.

The company's earnings were also hurt by increased expenses for stock-based compensation and newsprint.

Excluding $51 million in expenses related to stock-based compensation, net income increased by 30 percent.

Including good-will amortization, stock-based compensation and other charges, the company lost $11.3 million, or 51 cents a share.

While sales were unusually strong, Microsoft's profit declined in the quarter because of a significant charge for stock-based compensation for employees.

But profits for the three-month period included an after-tax charge of $2.17 billion, or 20 cents a share, in expenses related to the stock-based compensation.

Sun's results included a charge of $50 million related to an accounting change for stock-based compensation.

Earnings per share, adjusted for certain stock-based compensation, reached $1.37, far exceeding analysts' expectations of $1.21.

This year's third-quarter loss included $111 million in costs the company said were one-time charges related to acquisitions, investments and stock-based compensation.