Fourth quarter earnings increase 37 percent at Microsoft

July 22, 2005

Microsoft posted a strong 37 percent increase in its Q4 net earnings yesterday, saying that higher sales across all its divisions, from servers to its X-Box console and video games.

For the three months ending June 30, Microsoft said its quarterly net profits increased to $3.7 billion, or 34 cents a share, up from $2.69 billion, or 25 cents a share when compared to its fourth quarter in 2004.

Revenues jumped 9 percent to $10.2 billion, up from, up from $9.3 billion a year ago.

Results, which were released after the markets closed, included a a stock-based compensation expense of 3 cents per share, legal expenses of 5 cents a share and a 9 cent per share tax benefit.

Analysts polled by Thomson Financial predicted quarterly profits of 31 cents a share, on revenue of $10.2 billion. Analysts' estimates did not factor in the one-time charges.

Microsoft shares rose 25 cents to close at $26.44 on the New York Stock Exchange, then dropped 51 cents in late trading. The shares have traded between $23.82 and $30.20 over the past year.

For the coming fiscal year, which ends June 30, the Redmond-based company said it expects to earn $18.3 billion to $18.8 billion, or $1.27 to $1.32 a share, on revenue of $43.7 billion to $44.5 billion.

For the entire fiscal year, Microsoft reported earnings of $12.3 billion, or $1.12 per share, up from $8.2 billion, or 75 cents a share, in fiscal 2004. Revenue was $39.8 billion, up from $36.84 billion.

Source: Information Week

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