Microsoft on Thursday brushed off broader economic worries to give a confident projection of double-digit growth over the next year, although short-term weakness in sales of its core Windows product sent its shares sliding.

The world's biggest software maker reported revenues of $14.45bn for its third quarter, just shy of analyst estimates of $14.49bn averaged by Thomson Reuters.

It said the strength of its Xbox 360 console, software and accessory sales in its Entertainment and Devices Division had been offset by relative weakness in its Client Division, home of its Windows Vista software.

Chris Liddell, chief financial officer, told the Financial Times there had been some one-off factors affecting revenues there, including an inventory build-up.

Microsoft shares were down 5 per cent at $30.20 in after-hours trading in New York on the news, reducing the value of its cash-and-shares bid for Yahoo, originally priced at $31 a share and worth $44.6bn.

Mr Liddell said continuing losses in its online services business in the third-quarter would not change its strategy regarding the Yahoo bid. An acquisition of the internet company is aimed at boosting Microsoft's online business and making it more competitive with Google (NASDAQ: GOOG - News) .

But he said losses of $228m, up from $171m a year earlier, were in line with planned investments to grow the business organically. Revenues rose from $603m to $843m.

Major technology companies, including Apple, Google, Intel (NASDAQ: INTC - News) and IBM, have posted strong earnings over the past two weeks, suggesting the sector has yet to suffer any major impact from difficult macroeconomic conditions in the US.

Microsoft's results endorsed this and gave hope for the future. It reported third-quarter profits of $4.39bn or 47 cents a share, ahead of analyst expectations of 44 cents, while issuing stronger guidance than Wall Street expected for its 2009 fiscal year beginning in July.

Revenues would be in the range of $66.9bn-$68bn, with earnings per share of $2.13 to $2.19, it said. Analysts expected earnings of $2.10 on revenues of $66.5bn.

"We're keeping an eye on [the economy] like everyone else, but given our product mix, we are still seeing a very healthy business where we will grow revenues by 11 to 13 per cent next year," said Mr Liddell.

However, Microsoft's earnings forecast for the current quarter fell short of analyst expectations. The midpoint of its range of 45 to 48 cents per share was below Wall Street forecasts of 48 cents.

The company has given Yahoo until Saturday to come to an agreement on its takeover offer or face Microsoft turning hostile.