Bekker's Blog

Blog archive

Microsoft Annual Earnings Recap

By now you'll have heard that Microsoft is a $60 billion company, on the strength of 18 percent year-over-year growth. Operating income hit $22.5 billion a year, meaning Microsoft is approaching $2 billion a month in profit. Not a bad way to go out for semi-retiring chairman Bill Gates. Go here for our news story on the financial results.

The earnings documentation that Microsoft released last week was short on direct references to the channel, although COO Kevin Turner did give a nod to "strong execution by our partners" among four generic components of success in his canned quote for the press release.

There were a few items of interest in reading through the fine print. For one, the usually conservative company's projections for revenues next year are in the $67 billion to $68 billion range.

For another, there are a lot of references to increased costs -- nearly a billion dollars in all. According to company documents, those costs reflect "increased data center and equipment costs, online content expenses, and increased costs associated with the growth in our consulting services, partially offset by decreased Xbox 360 costs."

And nearly every business unit reports costs from increased headcount. The company is up to 91,259 employees as of June 30, an increase of 12,694 people in a year or 16 percent. Bill Gates' scrappy little company that used teams of smart, focused programmers to beat giant IBM is no more. Not that it's been around for awhile, but it hit home in this earnings release.

Posted by Scott Bekker on July 22, 2008 at 11:58 AM


Featured

  • End of Microsoft's Open License Program Leaves Door Open for CSPs

    Microsoft's 20-year-old Open License program for SMBs will be phased out in 2022, leaving a crucial role open for Cloud Solution Providers to fill.

  • The 2020 Microsoft Product Roadmap

    From the next major update to Windows 10 to the next generations of .NET and PowerShell, here's what's on tap from Microsoft this year.

  • Microsoft To Switch to Subscription Model for Some Server Products

    New application server products coming from Microsoft in the second half of 2021 will be offered only on a subscription basis.

  • Party Lights Graphic

    Microsoft Positions Itself as the Platform of Choice for 5G

    As telecom companies begin rolling out 5G services, Microsoft is touting its 5G bona fides, namely Azure support for SDN.