Kris Kumar
07-26-2007, 03:30 PM
<div class='os_post_top_link'><a href='http://www.microsoft.com/msft/earnings/FY07/earn_rel_q4_07.mspx' target='_blank'>http://www.microsoft.com/msft/earnings/FY07/earn_rel_q4_07.mspx</a><br /><br /></div><i>"Microsoft Corp. today announced revenue of $13.37 billion for the quarter ended June 30, 2007, a 13% increase over the same period of the prior year. Diluted earnings per share for the quarter were $0.31. Excluding $0.08 of previously announced charges primarily related to Xbox 360™ warranty policies, earnings per share would have been $0.39, an increase of 26% over the same period of the prior year when also adjusted for certain items. For the fiscal year ended June 30, 2007, Microsoft announced revenue of $51.12 billion, a 15% increase over the prior year. Diluted earnings per share for the year were $1.42. Excluding certain items, earnings per share would have been $1.49, an increase of 17% over the prior year when also adjusted for certain items. $31 billion in cash, or approximately 175% of operating cash flow, was returned to shareholders during the year through share buybacks and dividends. ... EDD revenue increased primarily due to increased Xbox 360 console sales, Zune sales, and increased Xbox accessories and video game sales. We shipped 6.6 million Xbox 360 consoles during fiscal year 2007 as compared to 5.0 million consoles during fiscal year 2006. Xbox and PC game revenue increased $650 million or 19% as a result of the increased number of Xbox 360 platform sales, partially offset by decreased sales of the first generation Xbox console and related accessories and video games. Zune, consumer hardware and software, and TV platforms revenue increased $539 million or 65%. Mobile and Embedded Devices revenue increased $138 million or 28% driven by sales growth in Windows Mobile software and Windows Embedded operating systems. EDD operating loss increased primarily due to the $1.06 billion Xbox 360 charge and Zune launch-related expenses."</i><br /><br /> <img src="http://www.smartphonethoughts.com/images/Kris-20070726-msftearning.jpg" alt="User submitted image" title="User submitted image"/> <br /><br />Microsoft may not be the darling of the folks at the Wall Street, but it does perform well and has the strength to absorb losses like the recent <a href="http://www.microsoft.com/Presspass/press/2007/jul07/07-05WarrantyExtentionPR.mspx">Xbox 360 hardware failure/warranty coverage fiasco.</a> Ever since the Mobile and Embedded Division merger with the Entertainment Divisions, we have not been getting the kind of depth in the earnings report regarding Windows Mobile sales and activities that we used to get before. Hopefully that will change in the coming quarterly reports; after all we would like to know how Windows Mobile is doing compared to its competitors especially the iPhone. ;-) That said, we did recently receive an email from the Microsoft PR firm with some additional information:<br /><br />"Microsoft Windows Mobile is coming off another successful year for fiscal `07 by selling more than 11 million Windows Mobile phone licenses – almost double of the number of licenses sold in FY06. This news stems from Microsoft's FY07 earnings announcement on July 19, 2007.<br /><br />Microsoft expects Windows Mobile to nearly double this amount in FY08 – projecting sales over 20 million licenses next year.<br /><br />Other earnings highlights include:<br />• Windows Mobile phone licenses sold in FY07 represent an 85 percent year-over-year increase.<br />• Windows Mobile phone licenses were up over 75 percent year-over-year in the fourth quarter."