By Scott Rubin

Tech giant Microsoft (MSFT) saw shares fall 3% in after-hours trading Thursday after reporting a profit that, while down from a year earlier, still beat analyst estimates. Revenue, however, came in below expectations.

Revenue in the period was $16 billion, down from $17.4 billion a year earlier. This compares to Wall Street consensus revenue estimates of $16.4 billion. On an adjusted basis, which takes into account the deferred revenue related to Windows and Office, revenue was $17.4 billion.

"The launch of Windows 8 is the beginning of a new era at Microsoft," said Steve Ballmer, CEO at Microsoft. "Investments we've made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners."

The company's server and tools segment posted an 8% increase in sales during the quarter, driven by by double-digit revenue growth in SQL Server and more than 20% growth in system center revenue.

Microsoft's business division saw sales drop 2% in the quarter on a GAAP basis, but once adjusted for the impact of an offer related to Office, revenue rose 1%.

The major weak area in the quarter for Microsoft was in its Windows and Windows Live division. Revenue fell 33% using GAAP standards to $3.24 billion and 9% on a non-GAAP basis. Windows 8 will become generally available on Oct. 26, the company said.

"While enterprise revenue continued to grow and we managed our expenses, the slowdown in PC demand ahead of the Windows 8 launch resulted in a decline in operating income," said Peter Klein, chief financial officer at Microsoft. "Multi-year licensing revenue grew double-digits across Windows, Server & Tools, and Microsoft Business Division products as businesses commit to our technology roadmap.”

The Redmond, Wash., company's entertainment and devices segment posted revenue of $1.95 billion, which was a decrease of 1% versus the year earlier period. Xbox continues to be the top-selling gaming console in the United States with a 49% market share. Microsoft will also be rolling out its Windows Phone 8 this fall, which should drive growth in this division going forward.

The company affirmed its guidance for 2013 operating expenses between $30.3 billion and $30.9 billion.

During the regular trading session Thursday, Microsoft shares fell 0.32% to $29.50. This year, Microsoft has added a little less than 14%.

(Microsoft owns and publishes Top Stocks, an MSN Money site.)