Microsoft took an expected hit from the pullback in internet access, contributing to a five percent dip in quarterly revenue, from $591 million in 3Q04 to $564 million in 3Q05; advertising revenue, however, was up $14 million, or four percent, reports PaidContent. Subscriptions and transactions increased 129 percent. Operating income slipped to $100 million from $101 million. The New York Times writes that profits nevertheless met analysts' expectations, and the company's forecast for sales and earnings for FY06, beginning in July, was higher than most analysts' estimates: Microsoft said that it expected revenues to increase 9-11 percent, roughly $43.3 billion to $44.1 billion.