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Microsoft_Investor_Relations_News_Release
Microsoft’s Annual Revenue Reaches $60 Billion
Fastest annual revenue growth since 1999 fuels 32% increase in earnings per share
REDMOND, Wash. — July 17, 2008 —
Microsoft Corp. today announced revenueof $15.84 billion for the fiscal fourth quarter ended June 30, 2008, an 18% increase over the same period of the prior year. Operating income and diluted earnings per share for thequarter were $5.68 billion and $0.46, representing growth of 42% and 48%, respectively,over the same period of the prior year.For the fiscal year ended June 30, 2008, Microsoft announced revenue of $60.42billion, an 18% increase over the prior year. Operating income and diluted earnings per share for the year were $22.49 billion and $1.87, representing yearly growth of 21% and32%, respectively.The growth rates for operating income and diluted earnings per share wereimpacted by a $1.1 billion charge in the fourth quarter of fiscal year 2007 related to theexpansion of the company’s Xbox 360 warranty coverage.“Delivering $60 billion in annual revenue is an outstanding accomplishment and atestament to the powerful combination of great technology solutions and strong executionby our partners and global sales and marketing teams,” said Kevin Turner, chief operatingofficer at Microsoft. “The outlook for fiscal year 2009 is positive given the breadth of our impressive technology portfolio and the expanding collection of online services we arebringing to market.”
This fiscal year marked the launch of Microsoft’s flagship server products: WindowsServer 2008, SQL Server 2008 and Visual Studio 2008. Revenue growth was primarilydriven by continued customer demand for all products, including Windows Vista, which hassold over 180 million licenses since launch, the 2007 Microsoft Office system, server software, and Xbox 360 consoles and games.“We had a strong finish in the fourth quarter, which capped off an impressive year for the company. We grew revenue 18% for the year with earnings per share significantlyoutpacing that,” said Chris Liddell, chief financial officer at Microsoft. “Looking forward,despite difficult economic conditions, we will build upon the momentum exiting fiscal year 2008 and expect to deliver another year of double-digit revenue and earnings growth infiscal year 2009.”
Business Outlook
Microsoft management offers the following guidance for the quarter endingSeptember 30, 2008:
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Revenue is expected to be in the range of $14.7 billion to $14.9 billion.
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Operating income is expected to be in the range of $5.9 billion to $6.0 billion.
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Diluted earnings per share are expected to be $0.47 or $0.48.Management offers the following guidance for the full fiscal year endingJune 30, 2009:
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Revenue is expected to be in the range of $67.3 billion to $68.1 billion.
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Operating income is expected to be in the range of $26.3 billion to $26.9 billion.
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Diluted earnings per share are expected to be in the range of $2.12 to $2.18.
Webcast Details
Microsoft will hold an audio webcast at 2:30 p.m. PDT (5:30 p.m. EDT) today withChris Liddell, senior vice president and chief financial officer, Frank Brod, corporate vice
president and chief accounting officer,
and Colleen Healy, general manager of Investor Relations, to discuss details of the company’s performance for the quarter and certainforward-looking information. The session may be accessed athttp://www.microsoft.com/msft. The webcast will be available for replay through the closeof business on July 17, 2009.
About Microsoft
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software,services and solutions that help people and businesses realize their full potential
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Forward-Looking Statements
Statements in this release that are "forward-looking statements" are based on current expectations andassumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:
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challenges to Microsoft’s business model;
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intense competition in all of Microsoft’s markets;
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Microsoft’s continued ability to protect its intellectual property rights;
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claims that Microsoft has infringed the intellectual property rights of others;
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the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;
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actual or perceived security vulnerabilities in Microsoft products that could reduce revenue or lead toliability;
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government litigation and regulation affecting how Microsoft designs and markets its products;
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Microsoft’s ability to attract and retain talented employees;
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delays in product development and related product release schedules;
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significant business investments that may not produce offsetting increases in revenue;
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changes in general economic conditions that affect demand for computer hardware or software;
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adverse results in legal disputes;
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unanticipated tax liabilities;
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Microsoft’s consumer hardware or other vertically-integrated hardware and software products mayexperience quality or supply problems;
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impairment of goodwill or amortizable intangible assets causing a charge to earnings;
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exposure to increased economic and regulatory uncertainties from operating a global business;
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geo-political conditions, natural disaster, cyber-attack or other catastrophic events disruptingMicrosoft’s business;
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acquisitions and joint ventures that adversely affect the business;
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improper disclosure of personal data could result in liability and harm to Microsoft’s reputation;
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outages and disruptions of online services if Microsoft fails to maintain an adequate operationsinfrastructure;
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sales channel disruption such as the bankruptcy of a major distributor; and
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Microsoft’s ability to implement operating cost structures that align with revenue growth.
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