Microsoft Corp. today announced revenue of $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 the quarter 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 $60.42 billion, 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% and 32%,
respectively.
The growth rates for operating income and diluted
earnings per share were impacted by a $1.1 billion charge in the fourth
quarter of fiscal year 2007 related to the expansion of the company’s
Xbox 360 warranty coverage.
“Delivering $60 billion in annual
revenue is an outstanding accomplishment and a testament to the
powerful combination of great technology solutions and strong execution
by our partners and global sales and marketing teams,” said Kevin
Turner, chief operating officer 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 are
bringing to market.”
This fiscal year marked the launch of
Microsoft’s flagship server products: Windows Server 2008, SQL Server
2008 and Visual Studio 2008. Revenue growth was primarily driven by
continued customer demand for all products, including Windows Vista,
which has sold 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 significantly outpacing 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 in fiscal year 2009.”
Business Outlook
Microsoft management offers the following guidance for the quarter ending September 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.
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Management offers the following guidance for the full fiscal year ending June 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.
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Webcast Details
Microsoft
will hold an audio webcast at 2:30 p.m. PDT (5:30 p.m. EDT) today with
Chris 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 certain
forward-looking information. The session may be accessed at http://www.microsoft.com/msft. The webcast will be available for replay through the close of 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.
Forward-Looking Statements
Statements in
this release that are "forward-looking statements" are based on current
expectations and assumptions 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 to liability;
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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 may experience 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 disrupting Microsoft’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 operations infrastructure;
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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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For
further information regarding risks and uncertainties associated with
Microsoft’s business, please refer to the “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and “Risk
Factors” sections of Microsoft’s SEC filings, including, but not
limited to, its annual report on Form 10-K and quarterly reports on
Form 10-Q, copies of which may be obtained by contacting Microsoft’s
Investor Relations department at (800) 285-7772 or at Microsoft’s
Investor Relations Web site at http://www.microsoft.com/msft.
All
information in this release is as of July 17, 2008. The company
undertakes no duty to update any forward-looking statement to conform
the statement to actual results or changes in the company’s
expectations.
For more information, financial analysts and investors only:
Colleen Healy, general manager, Investor Relations, (425) 706-3703
Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass
on Microsoft’s corporate information pages. Web links, telephone
numbers and titles were correct at time of publication, but may since
have changed. Shareholder and financial information, as well as today’s
2:30 p.m. PDT conference call with investors and analysts, is available
at http://www.microsoft.com/msft.
via microsoft
