MSFT FY 2010 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

FY 2010 Earnings

Reported July 30, 2010

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2010	Prior Q	FY 2009	QoQ Change	YoY Change
Revenue	$62.5B	—	$58.4B	—	6.9%
Op. Income	$24.1B	—	$20.4B	—	18.3%
Gross Margin	80.2%	—	79.2%	—	1.0pp
Net Margin	30.0%	—	24.9%	—	5.1pp
EPS (Diluted)	$2.10	—	$1.62	—	29.6%
Free Cash Flow	$22.1B	—	$15.9B	—	38.8%

Revenue Flow

Item	Amount
REVENUE	$62.5B
Cost of Revenue	$12.4B
GROSS PROFIT	$50.1B
R&D Expenses	$8.7B
Selling & Marketing	$13.2B
General & Administrative	$4.1B
SG&A Expenses	$17.3B
Other Expenses	$0
Operating Expenses	$26.0B
Cost & Expenses	$38.4B
OPERATING INCOME	$24.1B
Interest Income	$0
Interest Expense	$151M
Other Income/Expenses	$915M
INCOME BEFORE TAX	$25.0B
Income Tax Expense	$6.3B
Net Income from Continuing Ops	$18.8B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$18.8B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$18.8B
D&A	$2.7B
EBIT	$25.2B
EBITDA	$27.8B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$62.5B
Cost of Revenue	$12.4B
GROSS PROFIT	$50.1B
R&D Expenses	$8.7B
Selling & Marketing	$13.2B
General & Administrative	$4.1B
SG&A Expenses	$17.3B
Other Expenses	$0
Operating Expenses	$26.0B
Cost & Expenses	$38.4B
OPERATING INCOME	$24.1B
Interest Income	$0
Interest Expense	$151M
Other Income/Expenses	$915M
INCOME BEFORE TAX	$25.0B
Income Tax Expense	$6.3B
Net Income from Continuing Ops	$18.8B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$18.8B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$18.8B
D&A	$2.7B
EBIT	$25.2B
EBITDA	$27.8B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$18.8B
Depreciation & Amortization	$2.7B
Stock-Based Compensation	$1.9B
Deferred Income Tax	-$220M
Other Non-Cash Items	-$29.1B
Change in Working Capital	$30.0B
OPERATING CASH FLOW	$24.1B
Capital Expenditure	-$2.0B
Acquisitions (Net)	-$245M
Purchases of Investments	-$31.7B
Sales/Maturities of Investments	$22.6B
Other Investing Activities	-$1.5B
NET CASH FROM INVESTING	-$11.3B
Net Debt Issuance	$190M
Common Stock Repurchased	-$11.3B
Common Dividends Paid	-$4.6B
Other Financing Activities	$55M
NET CASH FROM FINANCING	-$13.3B
FREE CASH FLOW	$22.1B
Net Change in Cash	-$571M

Balance Sheet

Item	Amount
Cash & Equivalents	$5.5B
Short-Term Investments	$31.3B
Net Receivables	$13.0B
Inventory	$740M
Other Current Assets	$5.1B
TOTAL CURRENT ASSETS	$55.7B
PP&E (Net)	$7.6B
Goodwill	$12.4B
Intangible Assets	$1.2B
Long-Term Investments	$7.8B
Tax Assets	$0
Other Non-Current Assets	$1.5B
TOTAL NON-CURRENT ASSETS	$30.4B
TOTAL ASSETS	$86.1B
Account Payables	$4.0B
Short-Term Debt	$1.0B
Deferred Revenue	$13.7B
Other Current Liabilities	$6.2B
TOTAL CURRENT LIABILITIES	$26.1B
Long-Term Debt	$4.9B
Deferred Revenue NC	$1.2B
Deferred Tax Liabilities	$229M
Other Non-Current Liabilities	$7.4B
TOTAL NON-CURRENT LIABILITIES	$13.8B
TOTAL LIABILITIES	$39.9B
Common Stock	$62.9B
Additional Paid-In Capital	$0
Retained Earnings	-$16.7B
Treasury Stock	$0
Accum. Other Comp. Income	-$8.6B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$46.2B
Minority Interest	$0
TOTAL EQUITY	$46.2B
TOTAL LIABILITIES & EQUITY	$86.1B
Total Debt	$5.9B
Net Debt	$434M