Microsoft's (MSFT) first earnings report since CEO Steve Ballmer announced his pending departure saw the tech giant surprise Wall Street by posting profits and revenue above expectations.

The firm announced revenue of $18.53 billion for the quarter ending 30 September 2013, up 16 percent from the same period in 2012.

Interestingly, Microsoft also took time out to cite the improved performance of its Surface tablets, which it claims generated $400 million in sales across the quarter.

Surface success

"Our devices and services transformation is progressing and we are launching a wide range of compelling products and experiences this fall for both business and consumers," said Ballmer of the quarterly report.

"Our new commercial services will help us continue to outgrow the enterprise market, and we are seeing lots of consumer excitement for Xbox One, Surface 2 and Surface Pro 2, and the full spectrum of Windows 8.1 and Windows Phone devices."

Surface's recent success is undoubtedly down to Microsoft to offer significant price cuts in major territories – combined with bespoke promotions by local retailers – but the company will see the sales rise as an encouraging sign as the next batch of Surface SKUs hit the shelves.

Revenue from Microsoft's Devices & Consumer division – responsible for Microsoft's Windows business – saw revenue sneak up by 4 percent year-on-year to $7.5 billion.

Overall, profits for Microsoft came in at $5.24 billion, up 17 percent year-on-year, with Microsoft shares jumping by more than 5 percent in after hours trading.

[source: Microsoft]