Recently, software powerhouse Microsoft (MSFT) reported impressive fiscal first-quarter results. Revenue soared 27% to nearly $14 billion, beating the consensus estimate by more than $1 billion. Earnings moved 23% higher, to $4.3 billion or 45 cents per share. For a company of this size, putting up growth in the 20%-plus range is no easy feat, and shares have therefore responded positively to the report.

The company's crown jewels -- the Windows and Office franchises -- were both large contributors to the first-quarter's performance. Lingering in the market since January, some 28 million copies of Windows Vista were sold during the quarter, an indication that the new operating system is gaining traction after a disappointing launch earlier in the year. The premium versions of Vista have proven to be especially popular.

Much of the boost in operating system sales was due to double-digit increases in PC sales, which reflects not only the continued shift from desktops to laptops in the developed world, but also the rapid digitization of the emerging market economies. As large manufacturers of laptop computers are gaining market share in these areas, Microsoft will be better able to capture revenue with their operating systems.

Switching gears, the Entertainment and Devices division was the other large contributor to MSFT's quarter. This spunky business unit, responsible for the Xbox 360 and its portfolio of games, nearly doubled revenue year over year to roughly $2 billion. The release of Halo 3 had a lot to do with this, given that it was the largest entertainment launch in history, with sales of more than $175 million in its first day. The release also helped grow the customer base of Xbox 360s as we move into the holiday season, which will help drive strong sales in other Microsoft game titles moving forward. It also appears that Halo 3 gamers are avid users of the Xbox Live online gaming network, which is a boon to Microsoft since the service has very high margins.

The spectacular quarter was a huge contrast from Microsoft's performance in previous years. The future is bright for the company -- it looks like this tech giant has finally awakened.