Microsoft profit, sales smash expectations has word that profits at Redmond exceeded expectations, and the better-than-expected numbers don't even include Windows 7 presales. Word is: "Microsoft said fiscal first-quarter profit fell 18 percent to $3.57 billion, or 40 cents per share, compared with $4.37 billion, or 48 cents per share, in the year-ago quarter. Wall Street had expected much worse, calling for profit of 32 cents per share, on average, according to Thomson Reuters I/B/E/S. Sales fell 14 percent to $12.92 billion, partly reduced by a deferral of $1.47 billion in revenue to future quarters related to Microsoft's free upgrade to Windows 7 for recent buyers of the predecessor Vista system. That beat analysts' average forecast of $12.31 billion."