Microsoft reported good results yesterday for the last quarter of 2010. I guess the term good could be an understatement when you post a quarterly profit of $6.63 billion on numbers that beat the street. No one doubts that Microsoft is still a strong company with Windows, Office 2010, Xbox, Kinect and server businesses moving right along.

However, what we are interested in the Internet side of the ledger and it tells a familiar story that makes one wonder if Microsoft will ever make money online. The chart below from the Silicon Alley Insider gives a history of the excessive hemorrhaging that the online space has provided for the company with the latest quarter reporting a loss of $563 million.

Yesterday, Demand Media may have pulled off one of the best “just in time” IPO’s of all time. The company mass produces content and is one of the leading content farms in the online space. People within their company and others like them (Yahoo’s Associated Content, Examiner.com, AOL’s Seed etc.) bristle at the notion that they only produce high volume, keyword specific content which leaves quality far down the list of desired results. Truth be told, the vast majority if readers don’t know the difference which is more an indictment of education levels than a companies ability to capitalize on a market.