MSFT FY 2007 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

FY 2007 Earnings

Reported August 3, 2007

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2007	Prior Q	FY 2006	QoQ Change	YoY Change
Revenue	$51.1B	—	$44.3B	—	15.4%
Op. Income	$18.4B	—	$16.5B	—	11.9%
Gross Margin	79.1%	—	82.7%	—	-3.6pp
Net Margin	27.5%	—	28.5%	—	-0.9pp
EPS (Diluted)	$1.42	—	$1.20	—	18.3%
Free Cash Flow	$15.5B	—	$12.8B	—	21.1%

Revenue Flow

Item	Amount
REVENUE	$51.1B
Cost of Revenue	$10.7B
GROSS PROFIT	$40.4B
R&D Expenses	$7.1B
Selling & Marketing	$11.5B
General & Administrative	$3.3B
SG&A Expenses	$14.9B
Other Expenses	$0
Operating Expenses	$22.0B
Cost & Expenses	$32.7B
OPERATING INCOME	$18.4B
Interest Income	$1.3B
Interest Expense	$0
Other Income/Expenses	$1.7B
INCOME BEFORE TAX	$20.1B
Income Tax Expense	$6.0B
Net Income from Continuing Ops	$14.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$14.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$14.1B
D&A	$1.4B
EBIT	$18.4B
EBITDA	$19.9B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$51.1B
Cost of Revenue	$10.7B
GROSS PROFIT	$40.4B
R&D Expenses	$7.1B
Selling & Marketing	$11.5B
General & Administrative	$3.3B
SG&A Expenses	$14.9B
Other Expenses	$0
Operating Expenses	$22.0B
Cost & Expenses	$32.7B
OPERATING INCOME	$18.4B
Interest Income	$1.3B
Interest Expense	$0
Other Income/Expenses	$1.7B
INCOME BEFORE TAX	$20.1B
Income Tax Expense	$6.0B
Net Income from Continuing Ops	$14.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$14.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$14.1B
D&A	$1.4B
EBIT	$18.4B
EBITDA	$19.9B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$14.1B
Depreciation & Amortization	$1.4B
Stock-Based Compensation	$0
Deferred Income Tax	$421M
Other Non-Cash Items	$1.3B
Change in Working Capital	-$961M
OPERATING CASH FLOW	$17.8B
Capital Expenditure	-$2.3B
Acquisitions (Net)	-$1.1B
Purchases of Investments	-$36.3B
Sales/Maturities of Investments	$46.2B
Other Investing Activities	-$376M
NET CASH FROM INVESTING	$6.1B
Net Debt Issuance	$0
Common Stock Repurchased	-$27.6B
Common Dividends Paid	-$3.8B
Other Financing Activities	$54M
NET CASH FROM FINANCING	-$24.5B
FREE CASH FLOW	$15.5B
Net Change in Cash	-$603M

Balance Sheet

Item	Amount
Cash & Equivalents	$6.1B
Short-Term Investments	$17.3B
Net Receivables	$11.3B
Inventory	$1.1B
Other Current Assets	$4.3B
TOTAL CURRENT ASSETS	$40.2B
PP&E (Net)	$4.3B
Goodwill	$4.8B
Intangible Assets	$878M
Long-Term Investments	$10.1B
Tax Assets	$1.4B
Other Non-Current Assets	$1.5B
TOTAL NON-CURRENT ASSETS	$23.0B
TOTAL ASSETS	$63.2B
Account Payables	$3.2B
Short-Term Debt	$0
Deferred Revenue	$10.8B
Other Current Liabilities	$3.6B
TOTAL CURRENT LIABILITIES	$23.8B
Long-Term Debt	$0
Deferred Revenue NC	$1.9B
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$6.5B
TOTAL NON-CURRENT LIABILITIES	$8.3B
TOTAL LIABILITIES	$32.1B
Common Stock	$60.6B
Additional Paid-In Capital	$0
Retained Earnings	-$31.1B
Treasury Stock	$0
Accum. Other Comp. Income	$1.7B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$31.1B
Minority Interest	$0
TOTAL EQUITY	$31.1B
TOTAL LIABILITIES & EQUITY	$63.2B
Total Debt	$0
Net Debt	-$6.1B