Microsoft Corp. said Wednesday quarterly revenues would be up to 3 percent higher than expected, but said it would record $2.6 billion in investment losses. 

But the world's top software maker said results from operations during its fourth quarter ended June 30 were in line with expectations. 

Microsoft was expected to earn 42 cents a share, according to the consensus analyst estimate compiled by Wall Street tracking firm Thomson Financial/First Call. 

Including the non-cash investment loss, earnings would be 1 cent per share. 

Microsoft said revenues were stronger than expected and would come in at $6.5 billion to $6.6 billion, up from the company's previous estimate of $6.3 billion to $6.5 billion. 

``Core revenue growth for the quarter was strong and reflects consumer enthusiasm for our products and services, despite a slowing economy,'' Chief Financial Officer John Connors said in a statement. 

Connors also sounded a bullish note on the future, citing updates to the company's twin franchise of the Windows operating system and Office package of business productivity software. 

``With the recent launch of Office XP and the upcoming launches of Windows XP and Xbox, we are excited to see another strong product cycle for the company underway,'' Connors said. 

The $2.6 billion charge largely stemmed from losses in cable and telecommunications investments, Microsoft said, but gave did not reveal specific investments.