Microsoft Corporation (MSFT: chart) posted after the bell Thursday a 38% decrease in its quarterly earnings, weighed down by legal charges and stock-based compensation expenses. Despite the profit drop, the world’s largest software maker beat Wall Street’s estimates. Redmond, Washington-based Microsoft announced a net profit of $1.32 billion, or 12 cents per share, for its fiscal 2004 third quarter, compared with a net profit of $2.14 billion, or 20 cents per share, in the same quarter a year ago. Excluding items, earnings came in at 34 cents per share, up from 26 cents per share, a year earlier, and ahead of analysts’ average forecast of 29 cents per share. Microsoft recorded revenue of $9.18 billion in the quarter ended March 31, a 17% improvement from $7.84 billion, in the third quarter of 2003, helped by a 14% rise in personal computer shipments. Overall server unit sales climbed 17%.

Looking ahead, Microsoft said it expects to post fourth-quarter net income of 23 cents per share, on revenue of $8.9 billion to $9.0 billion.

Microsoft shares gained 50 cents to close Thursday at $25.95. The stock surged 4.86% to $27.21 in after-hours trading.

PeopleSoft, Inc. (PSFT: chart) of Pleasanton, California, announced after market close Thursday that its quarterly profits tumbled 37%, hurt by growing legal costs to stop a hostile takeover bid by Oracle Corp. The business software maker posted first-quarter net income of $24.2 million, or 7 cents per share, down from net income of $38.5 million, or 12 cents per share, in the year-earlier period. Earnings before items were $62.4 million, or 17 cents per share, a penny shy of the mean estimate of analysts. Quarterly revenue soared 40% to $643.1 million, aided by the company’s recent acquisition of J.D. Edwards & Co.

The stock rose 4.02% on Thursday to $18.89. Company shares shed 61 cents to $18.28 in after-market trade.

American Express Company (AXP: chart) reported Thursday net earnings of $794 million, or 61 cents per share, for its first quarter, up 15% from net earnings of $692 million, or 53 cents per share, in the 2003 equivalent. Excluding items, the New York-based financial services company posted earnings of $865 million, or 66 cents a share, gliding past analysts’ projections for earnings of 62 cents a share, on average. The company attributed the results to a rise in card-member spending, as well as higher financial adviser sales.

Company shares closed Thursday up 90 cents, or 1.80%, at $50.78. The stock dropped 33 cents to $50.45 in after-hours trading.

Amgen Inc. (AMGN: chart) of Thousand Oaks, California, said Thursday that its first-quarter net income jumped 40% to $690.2 million, or 52 cents a share, from $493 million, or 37 cents a share, in the prior-year period. The world's top biotechnology company said results were driven by strong drug sales, which rose 33% to $2.3 billion, from $1.8 billion a year ago. Analysts had expected first-quarter revenue of $2.35 billion.

The stock gained 13 cents on Thursday to $57.14. Amgen shares rose 2.07% to $58.32 in after-market trade.

Merck & Co., Inc. (MRK: chart) announced Thursday that its quarterly earnings eased 5% from a year earlier, when results included income from the company’s pharmacy benefits unit, which was spun off last year. The Whitehouse Station, New Jersey-based world’s No.3 pharmaceutical company turned in net income of $1.6 billion, or 73 cents per share, for its first quarter, against net income of $1.7 billion or 76 cents per share, in 2003. Quarterly revenue inched up 1% to $5.63 billion.

Merck shares edged up 24 cents to $46.74 at market close Thursday. The stock slipped 0.34% to $46.58 in after-hours trading.

AT&T Corp. (T: chart) of Bedminster, New Jersey, posted Thursday first-quarter net earnings of $304 million, or 38 cents a share, a 47% plunge from $571 million, or 73 cents a share, generated in the year-ago quarter. The U.S. top long-distance phone company cited pricing pressure by competitors as main factor for the decline. Sales slid 11% to $7.99 billion in the quarter, from $8.99 billion a year ago. Results, however, outpaced analysts’ estimates for a profit of 33 cents a share, on revenue of $7.96 billion.

The stock closed Thursday at $18.03, down 56 cents, or 3.01%.

Automatic Data Processing, Inc. (ADP: chart) reported Thursday a drop in its quarterly profits, hurt by lower interest rates. The world's No.1 payroll and tax filing processor said it had net income of $300.3 million, or 50 cents per share, in its third quarter, in contrast to net income of $329.4 million, or 54 cents per share, in the 2003 corresponding period. Roseland, New Jersey-based ADP recorded an 11% increase in revenue to $2.1 billion in the third quarter.

ADP shares inched down 3 cents on Thursday to $45.10. The stock gained 15 cents to $45.25 in after-market trade.

Lattice Semiconductor Corporation (LSCC: chart) of Hillsboro, Oregon, said Thursday that it narrowed its first-quarter net loss to $16.5 million, or 15 cents a share, from a net loss of $19.7 million, or 18 cents a share, in the 2003 comparable period. The chipmaker reported revenue of $59.1 million in the quarter, up 3% from $57.3 million, last year. Lattice said lower charges helped boost its earnings.

The stock dipped 1.80% to close Thursday at $8.74. Lattice shares recovered 2 cents to $8.76 in after-hours trading.

Visteon Corporation (VC: chart) announced Thursday that it swung to a profit in its fiscal 2004 first quarter from a prior-year loss, when results included $20 million in after-tax charges related to job cuts. The Dearborn, Michigan-based auto parts maker rolled out a first-quarter net profit of $30 million, or 23 cents per share, rebounding from a year-earlier net loss of $15 million, or 12 cents per share. The consensus estimate of analysts was for a profit of 13 cents a share.

Visteon shares soared 8.22% to $11.45 at market close Thursday.

MBNA Corporation (KRB: chart) of Wilmington, Delaware, posted Thursday first-quarter net income of $519.7 million, or 40 cents per share, a 20% improvement from net income of $432.5 million, or 33 cents per share, in the year-ago period. Results of the world’s No.1 independent credit card lender matched Wall Street’s views. MBNA said it benefited from an increase in new accounts.