Microsoft has reported that its profits surged 81% on record-high revenues of $16.37 billion in the last three months of 2007 due to intense demand for computer software.Chris Liddell, chief financial officer, Microsoft, said: "Revenue of over $16 billion this quarter exceeds our previous record by $2 billion. We are extremely pleased by the broad-based strength of our business performance and field execution."Microsoft said its net income for the quarter climbed to $4.7 billion, or 50 cents per share, as compared with $2.6 billion, or 26 cents a share, in the same period a year earlier.The earnings topped expectations by Wall Street analysts that forecast Microsoft would pull in 46 cents per share on just shy of $16 billion in revenues in the final quarter of 2007.Microsoft credited its new Windows Vista operating system released a year ago with lifting sales in the business and personal computer sectors.Kevin Johnson, president, platforms and services division, Microsoft, said: "We are pleased with the progress of Windows Vista in the market. We have hit our stride with partners and customers."The proclamation contrasts complaints from Vista users that the new operating system is vexing and conflicts with commonly-used software programmes."Vista is a nightmare," said Peter Hurme, publisher, Marine Digest, based in Seattle, near Microsoft's headquarters in neighbouring Redmond.