Microsoft topped Wall Street estimates for its fiscal fourth quarter and announced a $20 billion stock buyback plan; revenues at MSN were down.

Microsoft earned $2.83 billion, or 28 cents per share, in the fourth quarter - down 24 percent from the year-ago period - but that included a 3 cent per share charge for legal expenses (to pay a European Union fine). Not including that charge, the 31 cent per share quarterly profit beat analysts' expectations by a cent, writes the New York Times.

Revenue for the quarter was $11.8 billion, a 16 percent increase from a year earlier, and surpassing analysts' estimates of $11.6 billion. Microsoft also said it plans to repurchase as much as $20 billion worth of shares by Aug. 17 in a tender offer, writes the Associated Press. Microsoft said its board also had authorized up to $20 billion more on traditional stock repurchases by June 2011.

Revenues at MSN declined 3 percent, to $580 million, compared with $598 million a year ago, reports ClickZ. Growth in MSN's advertising business was flat during the most recent quarter; the access business declined 13 percent. The company didn't break out display advertising revenue, but CFO Chris Liddell said expansion was in line with that of the industry. Microsoft said all U.S. search ads are now served by MSN adCenter.

"We do not expect MSN to be profitable in this fiscal year [2007]," Liddell is quoted as saying. "We see for MSN that fiscal year '07 will be an investment year."