Microsoft 8-K 2008
Microsoft Reports Record Third-Quarter Revenue
Quarter marks the worldwide launch of Windows Server 2008, SQL Server 2008 and Visual Studio 2008.
REDMOND, Wash. April 24, 2008 Microsoft Corp. today announced third-quarter revenue, operating income and diluted earnings per share of $14.45 billion, $4.41 billion and $0.47, respectively. Operating income and earnings per share results included a charge of $1.42 billion, or $0.15 per share, for the European Commission fine. Income taxes were reduced by $0.15 per share for the resolution of a tax audit.
Our third-quarter results demonstrate the benefit of our diversified business model, said Chris Liddell, chief financial officer of Microsoft. Our broad span across geographies, product categories and customer segments is a tremendous asset and supports our outlook for double-digit revenue, operating income and earnings per share growth for this fiscal year and also for fiscal year 2009.
Entertainment and Devices revenue for the quarter grew 68% over the comparable period last year driven by robust demand for Xbox 360 consoles. Cumulative console sales surpassed 19 million during the quarter, up 74% from a year ago. Server and Tools revenue growth of 18% added to its string of consecutive double-digit revenue growth quarters, which now stands at 23.
The breadth of our product offerings and our ability to provide solutions across a range of customer and partner needs paid off again this quarter. The third quarter also kicked off the largest enterprise platform launch in our company history, which highlights Windows Server 2008, SQL Server 2008 and Visual Studio 2008, said Kevin Turner, chief operating officer of Microsoft. These new products strengthen our ability to help business customers and partners save money, optimize their people, processes and technology, and position IT as a strategic asset for their businesses.
Microsoft management offers the following guidance for the quarter ending June 30, 2008:
Management offers the following preliminary guidance for the full fiscal year ending June 30, 2009:
Additional details on fiscal year 2009 guidance will be provided in the fourth-quarter earnings announcement and during the companys Financial Analyst Meeting on July 24.
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 companys 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 April 24, 2009.
Adjusted Financial Results Reconciliation of Non-GAAP Measures
The financial results for the third quarter of fiscal year 2007 contained the recognition of $1.67 billion of revenue and operating income that had been deferred from the first half of the year related primarily to technology guarantee programs. Operating income also included $154 million of legal charges. Diluted earnings per share included $0.12 per share associated with the technology guarantee program, $0.01 for legal charges and $0.02 for tax benefits.
This information has been provided to aid readers of the financial statements in further understanding the companys financial performance. The impact of certain items and events on the financial results may not be indicative of trends affecting the companys business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance. The non-GAAP financial measures provided above should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Founded in 1975, Microsoft (Nasdaq MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
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:
For further information regarding risks and uncertainties associated with Microsofts business, please refer to the Managements Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors sections of Microsofts 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 Microsofts Investor Relations department at (800) 285-7772 or at Microsofts Investor Relations Web site at http://www.microsoft.com/msft.
All information in this release is as of April 24, 2008. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the companys expectations.
For more information, financial analysts and investors only:
Colleen Healy, general manager, Investor Relations, (425) 706-3703
For more information, press only:
Rapid Response Team, Waggener Edstrom Worldwide, (503) 443-7070, firstname.lastname@example.org
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 Microsofts 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 todays 2:30 p.m. PDT conference call with investors and analysts, is available at http://www.microsoft.com/msft.
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