MSFT FY 2011 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

FY 2011 Earnings

Reported July 28, 2011

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2011	Prior Q	FY 2010	QoQ Change	YoY Change
Revenue	$69.9B	—	$62.5B	—	11.9%
Op. Income	$27.2B	—	$24.1B	—	12.7%
Gross Margin	77.7%	—	80.2%	—	-2.4pp
Net Margin	33.1%	—	30.0%	—	3.1pp
EPS (Diluted)	$2.69	—	$2.10	—	28.1%
Free Cash Flow	$24.6B	—	$22.1B	—	11.5%

Revenue Flow

Item	Amount
REVENUE	$69.9B
Cost of Revenue	$15.6B
GROSS PROFIT	$54.4B
R&D Expenses	$9.0B
Selling & Marketing	$13.9B
General & Administrative	$4.2B
SG&A Expenses	$18.2B
Other Expenses	$0
Operating Expenses	$27.2B
Cost & Expenses	$42.8B
OPERATING INCOME	$27.2B
Interest Income	$900M
Interest Expense	$295M
Other Income/Expenses	$910M
INCOME BEFORE TAX	$28.1B
Income Tax Expense	$4.9B
Net Income from Continuing Ops	$23.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$23.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$23.1B
D&A	$2.8B
EBIT	$28.4B
EBITDA	$31.1B
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$69.9B
Cost of Revenue	$15.6B
GROSS PROFIT	$54.4B
R&D Expenses	$9.0B
Selling & Marketing	$13.9B
General & Administrative	$4.2B
SG&A Expenses	$18.2B
Other Expenses	$0
Operating Expenses	$27.2B
Cost & Expenses	$42.8B
OPERATING INCOME	$27.2B
Interest Income	$900M
Interest Expense	$295M
Other Income/Expenses	$910M
INCOME BEFORE TAX	$28.1B
Income Tax Expense	$4.9B
Net Income from Continuing Ops	$23.1B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$23.1B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$23.1B
D&A	$2.8B
EBIT	$28.4B
EBITDA	$31.1B
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$23.1B
Depreciation & Amortization	$2.8B
Stock-Based Compensation	$2.2B
Deferred Income Tax	$2M
Other Non-Cash Items	-$29.3B
Change in Working Capital	$28.2B
OPERATING CASH FLOW	$27.0B
Capital Expenditure	-$2.4B
Acquisitions (Net)	-$71M
Purchases of Investments	-$36.0B
Sales/Maturities of Investments	$23.8B
Other Investing Activities	$0
NET CASH FROM INVESTING	-$14.6B
Net Debt Issuance	$6.0B
Common Stock Repurchased	-$11.6B
Common Dividends Paid	-$5.2B
Other Financing Activities	-$23M
NET CASH FROM FINANCING	-$8.4B
FREE CASH FLOW	$24.6B
Net Change in Cash	$4.1B

Balance Sheet

Item	Amount
Cash & Equivalents	$9.6B
Short-Term Investments	$43.2B
Net Receivables	$15.0B
Inventory	$1.4B
Other Current Assets	$5.8B
TOTAL CURRENT ASSETS	$74.9B
PP&E (Net)	$8.2B
Goodwill	$12.6B
Intangible Assets	$744M
Long-Term Investments	$10.9B
Tax Assets	$0
Other Non-Current Assets	$1.4B
TOTAL NON-CURRENT ASSETS	$33.8B
TOTAL ASSETS	$108.7B
Account Payables	$4.2B
Short-Term Debt	$0
Deferred Revenue	$15.7B
Other Current Liabilities	$7.1B
TOTAL CURRENT LIABILITIES	$28.8B
Long-Term Debt	$11.9B
Deferred Revenue NC	$1.4B
Deferred Tax Liabilities	$1.5B
Other Non-Current Liabilities	$8.1B
TOTAL NON-CURRENT LIABILITIES	$22.8B
TOTAL LIABILITIES	$51.6B
Common Stock	$63.4B
Additional Paid-In Capital	$0
Retained Earnings	-$6.3B
Treasury Stock	$0
Accum. Other Comp. Income	$1.9B
Other Equity	-$1.9B
TOTAL STOCKHOLDERS' EQUITY	$57.1B
Minority Interest	$0
TOTAL EQUITY	$57.1B
TOTAL LIABILITIES & EQUITY	$108.7B
Total Debt	$11.9B
Net Debt	$2.3B