Microsoft has dropped its strongest hint yet that it could take the wraps off its new Windows Mobile 7 platform at next month’s GSMA Mobile World Congress. On an earnings call yesterday, Microsoft CFO Peter Klein said that the software giant was “working very hard on the next version of Windows Mobile [and we] will be talking more about that in Barcelona in a few weeks.” Bill Koefoed, Microsoft’s IR manager, had earlier told analysts that the firm “continues to make progress in the mobile space and you will hear more about that at Mobile World Congress in February.” The firm gave no further details but recent speculation has suggested that Microsoft is planning two versions of the long-awaited Windows Mobile 7; a ‘Business’ edition – reportedly a basic version of the operating system based on Microsoft Office – and a feature-packed ‘Media’ version. Other reports suggest that Microsoft may simply use Barcelona to launch Windows Mobile 6.6, a minor update to the current platform. It is also rumoured to be launching its own-branded smartphone based on its Zune music service, although the company has always denied such a move. Microsoft has a press conference scheduled for the first day at Congress, where major announcements are expected to be made.

Microsoft reported a 60 percent increase in profit for its fiscal second quarter yesterday, helped by strong early sales for the PC version of Windows 7, which launched last October. Net profit for the quarter ended December 2009 was US$6.7 billion, or 74 cents per share, compared to US$4.2 billion, or 47 cents per share, a year ago. Revenue rose 14 percent to US$19.02 billion (including US$1.71 billion of deferred revenue from the Windows 7 launch). Unconfirmed reports suggest that Microsoft is looking to combine the PC version of Windows 7 and Windows Mobile 7 into one brand, which may mean it will drop the ‘Windows Mobile’ brand and replace it with simply ‘Seven’ for the (rumoured) launch of the new mobile platform next month.