MSFT FY 2008 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

FY 2008 Earnings

Reported July 31, 2008

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2008	Prior Q	FY 2007	QoQ Change	YoY Change
Revenue	$60.4B	—	$51.1B	—	18.2%
Op. Income	$22.3B	—	$18.4B	—	20.8%
Gross Margin	80.8%	—	79.1%	—	1.7pp
Net Margin	29.3%	—	27.5%	—	1.8pp
EPS (Diluted)	$1.87	—	$1.42	—	31.7%
Free Cash Flow	$18.4B	—	$15.5B	—	18.7%

Revenue Flow

Item	Amount
REVENUE	$60.4B
Cost of Revenue	$11.6B
GROSS PROFIT	$48.8B
R&D Expenses	$8.2B
Selling & Marketing	$13.3B
General & Administrative	$5.1B
SG&A Expenses	$18.4B
Other Expenses	$0
Operating Expenses	$26.6B
Cost & Expenses	$38.1B
OPERATING INCOME	$22.3B
Interest Income	$888M
Interest Expense	$0
Other Income/Expenses	$1.5B
INCOME BEFORE TAX	$23.8B
Income Tax Expense	$6.1B
Net Income from Continuing Ops	$17.7B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$17.7B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$17.7B
D&A	$2.1B
EBIT	$23.9B
EBITDA	$26.0B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$60.4B
Cost of Revenue	$11.6B
GROSS PROFIT	$48.8B
R&D Expenses	$8.2B
Selling & Marketing	$13.3B
General & Administrative	$5.1B
SG&A Expenses	$18.4B
Other Expenses	$0
Operating Expenses	$26.6B
Cost & Expenses	$38.1B
OPERATING INCOME	$22.3B
Interest Income	$888M
Interest Expense	$0
Other Income/Expenses	$1.5B
INCOME BEFORE TAX	$23.8B
Income Tax Expense	$6.1B
Net Income from Continuing Ops	$17.7B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$17.7B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$17.7B
D&A	$2.1B
EBIT	$23.9B
EBITDA	$26.0B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$17.7B
Depreciation & Amortization	$2.1B
Stock-Based Compensation	$1.5B
Deferred Income Tax	$935M
Other Non-Cash Items	-$22.6B
Change in Working Capital	$22.1B
OPERATING CASH FLOW	$21.6B
Capital Expenditure	-$3.2B
Acquisitions (Net)	-$8.1B
Purchases of Investments	-$21.0B
Sales/Maturities of Investments	$27.7B
Other Investing Activities	-$127M
NET CASH FROM INVESTING	-$4.6B
Net Debt Issuance	$0
Common Stock Repurchased	-$12.5B
Common Dividends Paid	-$4.0B
Other Financing Activities	$120M
NET CASH FROM FINANCING	-$12.9B
FREE CASH FLOW	$18.4B
Net Change in Cash	$4.2B

Balance Sheet

Item	Amount
Cash & Equivalents	$10.3B
Short-Term Investments	$13.3B
Net Receivables	$13.6B
Inventory	$985M
Other Current Assets	$5.0B
TOTAL CURRENT ASSETS	$43.2B
PP&E (Net)	$6.2B
Goodwill	$12.1B
Intangible Assets	$2.0B
Long-Term Investments	$6.6B
Tax Assets	$949M
Other Non-Current Assets	$1.7B
TOTAL NON-CURRENT ASSETS	$29.6B
TOTAL ASSETS	$72.8B
Account Payables	$4.0B
Short-Term Debt	$0
Deferred Revenue	$13.4B
Other Current Liabilities	$6.6B
TOTAL CURRENT LIABILITIES	$29.9B
Long-Term Debt	$0
Deferred Revenue NC	$1.9B
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$4.7B
TOTAL NON-CURRENT LIABILITIES	$6.6B
TOTAL LIABILITIES	$36.5B
Common Stock	$62.8B
Additional Paid-In Capital	$0
Retained Earnings	-$27.7B
Treasury Stock	$0
Accum. Other Comp. Income	$1.1B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$36.3B
Minority Interest	$0
TOTAL EQUITY	$36.3B
TOTAL LIABILITIES & EQUITY	$72.8B
Total Debt	$0
Net Debt	-$10.3B