Seattle ? Microsoft Corp. reported a drop in earnings Thursday for its fiscal second quarter, as the software giant took a huge charge for stock-based compensation for employees. But revenue increased 19 percent as the company saw signs of improvement in corporate technology spending.

For the quarter ended Dec. 31, Microsoft reported earnings of $1.55 billion, or 14 cents per share, down from earnings of $1.87 billion, or 17 cents per share, in the year-ago period.

But earnings for the three-month period included an after-tax charge of $2.17 billion, or 20 cents per share, in expenses related to the stock-based compensation.

Without the charge, the company would have had earnings of 34 cents per share. Analysts polled by Thomson First Call had expected earnings of 30 cents per share.

The Redmond, Wash.-based technology company reported record revenues of $10.15 billion, up 19 percent from revenues of $8.54 billion in the same period a year earlier.

Microsoft chief financial officer John Connors said the company saw strong demand for its Windows XP and Office products during the quarter, as the overall corporate information technology market began to show signs of recovery.

“Across the board we had a great quarter,” Connors said.

Buoyed by those positive signs, the company increased slightly its forecasts for the full fiscal year. It now expects to have earnings per share of 82 cents to 83 cents, including a charge of about 35 cents to account for expenses related to stock-based compensation.