InsideMicrosoft

Microsoft Releases Fourth Quarter Earnings

Microsoft has released its earnings report for the previous quarter. Looks good, first year of $50 billion in revenue, beat or met all expectations.

Here’s the summary:

Revenue: $13.37 billion, a 13% increase from 2006

Diluted earnings per share: $0.31
Cost of Xbox 360 warranty program: $0.08
Earnings per share without warranty program: $0.39, an increase of 26% over the prior year

For the entire previous fiscal year:

Revenue: $51.12 billion, a 15% increase over the prior year

Diluted earnings per share for the year were $1.42. ($1.49 without certain charges, an increase of 17%)

Amount returned to shareholders in dividends and buybacks: $31 billion in cash, or approximately 175% of operating cash flow

Guidance for the coming quarter, ending September 30, 2007:

Revenue: $12.4 billion to $12.6 billion.

Operating income: $5.0 billion to $5.2 billion.

Diluted earnings per share: $0.38 to $0.40.

Guidance for the coming fiscal year, ending June 30, 2008:

Revenue: $56.8 billion to $57.8 billion.

Operating income: $22.2 billion to $22.7 billion.

Diluted earnings per share: $1.69 to $1.73.

The Xbox 360 charges were $1.057 billion.

Research and development: $1.948 billion, up $87 million

Sales and marketing: $3.329 billion, up $507 million

Cash on hand: $6.111 billion, down $603 million

Division, in millions:
Client: Revenue - $3,808 up 14%, profit - $2,818 up 11%
Server: Revenue - $3,082, profit - $1,054, both up 15%
Online Services Business: Revenue - $688 up 19%, operating loss - $239, down 28%
Microsoft Business Division: Revenue - $4,633, profit - $2,994, both up 19%
Entertainment and Devices Division: Revenue - $1,159, down 10%, operating loss, $1,199, down 183%
Corporate expenses: $1,439, up 4%
Cost of Revenue: $3,237, up 52%
Research and Development: Costs - $1,948, up 5%
Sales and Marketing: Costs - $3,329, up 18%
General and Administrative: Costs - $868, down 22%

July 19th, 2007 Posted by Nathan Weinberg | General | 5 comments