Buoyed by strong growth in gaming console Xbox, technology giant Microsoft saw revenues from the Devices & Consumer (D&C) hardware segment rising 68% to $ 4.73 billion during the October-December quarter.
Microsoft, which follows July-June as fiscal year, saw its total revenues grow 14% to $ 24.52 billion in Q2 2013, from $ 21.46 billion in the same period last fiscal.
Net income was up 3.47% at $6.56 billion from $6.34 billion during the reported quarter.
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"The investments we are making in devices and services that deliver high-value experiences to our customers, and the work we are doing with our partners, are driving strong results and positioning us well for long-term growth," Microsoft CEO Steve Ballmer said.
Sales of its gaming console XBox stood at 7.4 million units, while Surface (tablet) revenue more than doubled sequentially from $ 400 million in Q1 2013 to $ 893 million in the second quarter on higher sales of Surface 2 and Surface Pro 2.
Both the devices are accounted under the D&C hardware category.
The US-based firm, which reports revenue segments under D&C, commercial and corporate & others, saw overall D&C revenues grow by 13% at $ 11.91 billion.
Microsoft, in a bid to expand its D&C portfolio, acquired Finnish handset major Nokia for $ 7.2 billion in September last year. The process is expected to be completed in January-March quarter this year.
The firm is also in the process of making a shift towards smart handheld devices like smartphones and tablets.
Revenues from commercial segment grew 10% to $ 12.67 billion. The company, which is synonymous with the Windows Operating System, includes Microsoft Office for business, Exchange, SharePoint and Lync in the Commercial Licensing segment.
"Our Commercial segment continues to outpace the overall market and our Devices and Consumer segment had a great holiday quarter," Ballmer said.
The company's cash and cash equivalents stood at $ 10.06 billion at the end of the reported quarter.
Microsoft CFO Amy Hood said: "We delivered record revenue as demand for our business offerings remains high and we made strong progress in our Devices and Consumer segment."
These results reflect Microsoft's focus on execution, cost discipline and long-term shareholder value as it continues to drive the strategic transformation of the company, she added.