Despite the low corporate spending, Microsoft Corporation (MSFT: chart) said after market close Thursday its fiscal first-quarter earnings increased 28%, on the back of strong consumer demand in the back-to-school season. The Redmond, Washington-based world’s top software company reported a profit of $2.61 billion, or 24 cents a share, compared with $2.04 billion, or 19 cents a share, generated a year earlier. The company said revenue was $8.22 billion, for the quarter ended September 30, up 6% from $7.75 billion, for the same period a year ago. Excluding extraordinary items, Microsoft posted earnings of 30 cents a share, topping analysts’ expectations for profit of 29 cents a share on revenue of $8.08 billion. Microsoft said it signed fewer big corporate contracts than it had expected, citing concerns over the security of its software as main obstacle.

For the fiscal second quarter, Microsoft said it expects to post earnings of 29 to 30 cents a share, on revenue of $9.7 billion to $9.8 billion.

Microsoft shares closed Thursday up 2 cents, or 0.07%, at $28.91. The stock slid 4.74% to $27.54 in after-hours trading.

Gateway, Inc. (GTW: chart) of Poway, California, said after market close Thursday its third-quarter loss widened, due to weaker sales and charges related to job cuts. The computer maker posted a loss of $138.8 million, or 43 cents a share, compared with a loss of $49.7 million, or 15 cents a share, last year. Revenue declined 21% to $883.1 million, from $1.12 billion a year ago.

Gateway’s stock fell 5 cents on Thursday to $6.10. Company shares plummeted 14.10% to $5.24 in after-hours trading.

JDS Uniphase Corp. (JDSU: chart), the San Jose, California-based maker of fiber-optic components said Thursday it narrowed its 2004 first-quarter loss to $28.1 million, or 2 cents a share, from a loss of $520.5 million, or 37 cents a share, in the year-ago period. Excluding charges, loss for the quarter was 1 cent a share, up from 4 cents a share last year. Analysts had called for a loss of 2 cents a share.

Company shares rose 0.93% to close Thursday at $3.78. The stock dropped 6.08% to $3.55 in after-hours trading.

Boosted by strong sales, Scientific-Atlanta, Inc. (SFA: chart), one of the largest makers of set-top boxes, reported Thursday a quadrupled net profit of $42.7 million, or 28 cents a share, against $11 million, or 7 cents a share, in the year-earlier period. The Lawrenceville, Georgia-based company topped by a penny the average estimate of analysts.

The stock gained 3.03% to $35.03 on Thursday. Company shares plunged 13.79% to $30.20 in after-hours trading.

The Dow Chemical Company (DOW: chart) of Midland, Michigan, said Thursday its third-quarter earnings doubled to $332 million, or 36 cents a share, compared with $128 million, or 14 cents a share, in the 2002 corresponding period. The largest chemical company in the U.S. attributed the results to cost-cutting and productivity improvements. Sales for the quarter ended September 30 were up to $7.98 billion from $7.08 billion a year ago.

Company shares rose 3.93% to close Thursday at $36.22. The stock fell 27 cents to $35.95 in after-hours trading.

American Electric Power Company, Inc. (AEP: chart) reported Thursday a net profit of $257 million, or 65 cents per share, for its third quarter, a 40% decline from $425 million, or $1.25 per share, in the 2002 equivalent. The Columbus, Ohio-based No.1 power producer in the U.S. cited mild weather and loss-making investments as main factors for the drop in profit. Revenue rose to $4.1 billion, from $3.8 billion last year.

The stock dipped 1.45% to close Thursday at $29.19.

Eastman Chemical Company (EMN: chart), the Kingsport, Tennessee-based chemical producer, posted after market close Thursday a third-quarter loss of $336 million, or $4.35 a share, compared with a net profit of $24 million, or 31 cents, for the same quarter last year. The company said results were weighed down by restructuring charges.

Shares of the company closed Thursday up 35 cents at $32.59. The stock slipped 0.25% to $32.51 in after-hours trading.

Reebok International Ltd. (RBK: chart) reported Thursday a 17.4% jump in profit, boosted by back-to-school sales and increased advertising. The No2. U.S. maker of athletic shoes based in Canton, Massachusetts, earned $62.7 million, or 96 cents a share, for its fiscal third quarter, up from $53.4 million, or 81 cents a share, a year ago, and above analysts’ forecasts of 93 cents a share.

Reebok’s stock gained 51 cents to $37.75 at market close Thursday.

Colgate-Palmolive Company (CL: chart) said Thursday its third-quarter income was $365.4 million, or 63 cents a share, up 10% from $330.7 million, or 57 cents a share, a year ago, and in line with analyst’s projections. The New York-based toothpaste and soap maker said it benefited from the weak dollar and a lower tax rate.

Company shares slid 7.91% to $53.19 on Thursday. The stock fell 35 cents to $52.84 in after-hours trading.

Sara Lee Corporation (SLE: chart), the Chicago, Illinois-based consumer goods company, said Thursday earnings for its 2004 first quarter slumped 25% to $230 million, or 29 cents a share, down from $308 million, or 38 cents a share, in the prior year, but ahead of Wall Street’s forecasts for profit of 26 cents a share. The company said the drop in profit was due to weak sales in its apparel unit.