Microsoft's quarterly sales passed $10 billion for the first time, with revenues up by 19% to $10.2 billion. Operating profits were also comfortably ahead of Wall Steet projections, but were more than halved to a final $1.6 billion after deducting $2.2 billion in charges mainly resulting from changes to its employee stock-option plan. For details see The Mercury News, USA Today, etc.
Update: Microsoft said: "The revenue growth was driven primarily by licensing of the recently launched Office 2003, increased licensing of Windows operating systems through OEMs and Server and Tools products, and 19% growth in MSN revenue." Client revenue was $3.06 billion, with XP Pro stable at 55% of the Windows market. Total Server and Tools revenue grew 21% to $2.13 billion, with "an estimated 19% increase in Windows-based server shipments driving 17% growth in new Windows Server license sales."
Cash and short-term investments totaled $52.78 billion as of December 31, 2003. Cash flow from operations for the second quarter of fiscal 2004 was $4.57 billion, compared to $2.77 billion in the comparable quarter of the prior year.
