Microsoft Corp. (MSFT) Thursday said its quarterly profit climbed as revenue rose 12 percent, but its shares fell as investors failed to account for the effect of the expensing of stock-based compensation in assessing the earnings.

Net profit for the world's largest software maker rose to $2.9 billion, or 27 cents per share, including stock-based compensation, for its first fiscal quarter ended Sept. 30, from a profit of $2.6 billion, or 24 cents per share, a year earlier.

Excluding stock-based compensation, Microsoft had a profit of 32 cents per share, according to several analysts.

That was above the 30 cents per share that analysts, on average, had expected, according to forecasts compiled by Reuters Estimates.

"The stock traded down a little bit because people don't realize you have to add back in 5 cents (for the stock compensation)," said analyst Brendan Barnicle of Pacific Crest Securities.

Microsoft shares fell 2 percent to $28.00 in after-hours trade on INET (search), after closing down 14 cents at $28.56 on Nasdaq (search).

Revenue rose to $9.19 billion from $8.22 billion a year earlier.

For the fiscal second quarter, Microsoft forecast revenue of $10.3 billion to $10.5 billion and earnings per share, including stock-based compensation, of 28 cents.

Analysts, on average, have forecast second-quarter revenue of $10.63 billion, according to Reuters Estimates.

For the full fiscal year, Microsoft said it sees revenue of $38.9 billion to $39.2 billion and earnings per share, including stock-based compensation, of $1.07 to $1.09.

Analysts' full-year revenue estimate, on average, was for $38.92 billion,

"The full-year guidance looks good on both earnings per share and revenue," Barnacle said. "It's at least in line with where the Street is."