Microsoft Revenue Rises

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.