Microsoft Revenue Rises

By Peter Galli  |  Posted 2003-04-15 Print this article Print

Revenue rose 8 percent to $7.84 billion for the quarter ended March 31, 2003, over the $7.25 billion in revenue posted for the same year-ago period.

Microsoft Corp. on Tuesday reported an 8 percent rise in revenue to $7.84 billion for the quarter ended March 31, 2003, over the $7.25 billion in revenue posted for the same year-ago period. Revenue growth was driven primarily by unearned revenue from strong multi-year licensing in prior periods, but was offset by a 42 percent fall in revenue from its Home and Entertainment division, which includes the Xbox video game system; PC games; consumer software and hardware; and its TV platform, the company said in a statement released Tuesday afternoon. Operating income grew 13 percent to $3.72 billion over the March quarter from the $3.3 billion reported in the prior year. Net income for the quarter came in slightly higher at $2.79 billion in the period from $2.74 billion the previous year, with diluted earnings a share of $0.26 in the March quarter.
John Connors, Microsofts chief financial officer, said in a statement that the environment remains tough, cautioning that there is "obviously a great deal of economic uncertainty ahead." This mirrors the sober picture he painted of the global economy in January.
Microsoft management also said it expects revenue for the quarter to end-June to be in the range of $7.8 billion to $7.9 billion, with operating income expected of between $3.1 billion and $3.2 billion and diluted earnings per share of either $0.23 or $0.24. For the full fiscal year to end-June, revenue of between $33.1 billion and $33.8 billion is expected, with operating income of $14.8 billion to $15.1 billion and diluted earnings per share of $1.04 and $1.06.

Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at


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