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Microsoft continues to struggle in the mobile world, and for the second year in a row, it admitted it had failed to hit its targets for Windows Mobile licenses.

The software giant, announcing results for its first fiscal quarter, said it sold 18m licenses for its mobile operating system during its full financial year, which ended in June 2008, well short of its target of 20m. And the first quarter does not promise better performance in fiscal 2009, especially as Windows Mobile's main rivals, Symbian and Android, move to the open source model that Microsoft still rejects.

In total, Microsoft reported first quarter 2009 revenues of $15.06bn, a 9% increase and slightly ahead of analyst expectations. The Entertainment and Devices Division, which includes the mobile products, delivered $1.8bn in revenue and $178m profit. Online Services was the poor performer, with a loss of $480m on revenues of $770m. Total company net income increased 2% to $4.37bn, but Microsoft lowered its full year outlook, revenues of $64.9-66.4bn, from an earlier estimate of $67.3-68.1bn.

Microsoft remains determined to keep Windows Mobile in the center of the game alongside Nokia and Google. The Entertainment and Devices division recorded a $145m quarterly spend on R&D, a 46% quarter-on-quarter increase, "primarily reflecting increased headcount related expenses associated with the Windows Mobile device platform".

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