REDMOND, Wash., April 27 /PRNewswire-FirstCall/ -- Microsoft Corp. (Nasdaq: MSFT) today announced third-quarter revenue of $10.90 billion for the period ended March 31, 2006, a 13% increase over the same quarter of the prior year. Operating income for the quarter was $3.89 billion, or a 17% increase compared with $3.33 billion in the prior-year period.

For the three months ended March 31, the Redmond software maker reported earnings of $2.98 billion, or 29 cents per share, compared with $2.56 billion, or 23 cents per share, in the same period a year earlier.

Analysts polled by Thomson Financial were expecting earnings of 33 cents per share, on revenue of $11.04 billion.

Company shares fell more than 6 percent in late trading.