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

  • The 2019 Microsoft Product Roadmap

    From the next major update to Windows 10 to the next generation of HoloLens, here's what's on tap from Microsoft this year.

  • Microsoft, Salesforce Ink Deal Around Azure Cloud and Teams

    As part of a new partnership, CRM service provider Salesforce will leverage certain Microsoft Azure services, as well as Microsoft Teams, for services to customers.

  • 2019 Microsoft Conference Calendar: For Partners, IT Pros and Developers

    Here's your guide to all the IT training sessions, partner meet-ups and annual Microsoft conferences you won't want to miss this year.

  • Version 1909 of Windows 10 and Windows Server Released

    Windows 10 version 1909, also known as the "Windows 10 November 2019 Update," was officially released by Microsoft on Tuesday.

RCP Update

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.