• BusinessWeek, Friday, October 24, 2008 11:30 AM

Journalists and investors waiting for the Microsoft earnings call to begin this week sat listening to a suggestive piece of music: The theme from the Lone Ranger (more properly known as The William Tell Overture). Was Microsoft about to come to the rescue?

Surprisingly, yes. Microsoft beat analysts' revenue and profit expectations in the period that ended in September, a rare bit of good financial news over these past few months. And while it is still having trouble seeing the future -- like most companies these days -- its forecast for this quarter is assumes that the recession will be mild.

The Redmond, Wash.-based company expects PC sales to grow 10% to 12% this yearend shopping season. "It's important to keep things in perspective," said CFO Chris Liddell. "We still see revenue growth."

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