Microsoft took a widely expected hit on PC weakness in the December quarter but that didn't stop the old girl from posting record beat-the-Street revenues of $19.95 billion, up 5%, and earning $6.63 billion, only a hair short of last year's net and better than Apple's $6 billion. Having bought back $5 billion worth of its stock its ESP worked out to a handsome 77 cents a share, way ahead of the 68 cents expected.

With Windows sales suffering from consumer fatigue and iPad distraction, the company's Office and Xbox operations picked up a lot of the slack.

The Windows & Windows Live Division only saw revenues of $5 billion versus $7.2 billion a year ago. However, the Business Division, home to Office and the company's new webby Office 365 software, did $6 billion versus $4.9 billion last year, up 24%, and its Entertainment and Devices Division, where Xbox and new Kinect sensor live, went from $2.4 billion to $3.7 billion, up 55%, with eight million Kinect widgets selling in 60 days, exceeding expectations.

Microsoft said Office 2010 license sales are better than 50% ahead of the old Office 2007.

Server and Tools did a flatter $4.4 billion versus $3.97 billion, which may explain Steve Ballmer dumping Bob Muglia. Online Service is still chugging along with $691 million, up from $579 million. Of course it lost $543 million but there's talk of share gains.

Windows made $3.3 billion, down from $5.4 billion. Office earned close to $4 billion, up from $3 billion and Server and Tools turned in $1.8 billion versus $1.5 billion.

Microsoft said it's sold over 300 million Windows 7 licenses. It figures the year-old operating system is running on over 20% of Internet-connected PCs.

The company reaffirmed operating expense guidance of $26.9 billion-$27.3 billion for the full year ending June 30.

Micosoft's earnings crossed the wire - and Twitter - long before the markets in New York closed because a data miner identified as Selerity discovered what Microsoft claimed was a "preproduction draft" of its earnings that Microsoft posted to its web site. Last quarter Microsoft stopped distributing press releases of its financial results. It is now reportedly examining its process. It's unclear whether the trades made on the basis of the leak will stick.