Microsoft hits the heights with revenue results

18 Jul 2003

Microsoft has reported a rise in revenue and profits for its financial year, with turnover declared at US$32.19bn, up 13pc from the US$28.37bn recorded last year. The world’s largest software company saw its net profits for the year rise further still, by more than 27pc; the net profit of US$9.99bn declared for the year ended 30 June 2003 shows a substantial increase from US$7.83bn for its 2002 fiscal year.

The company also grew its revenue by 11pc for the fourth quarter, to US$8.07bn, compared with the same period last year, thanks to “better than expected” sales and solid demand, the company announced yesterday. Microsoft’s fourth-quarter operating income came in at US$2.19bn, a figure that included charges of US$796m primarily related to the settlement of a lawsuit with AOL Time Warner.

“In fiscal year 2003, we reported double digit revenue growth in each of our businesses. In the fourth quarter, sales came in better than expected reflecting solid corporate and consumer demand for our products,” said John Connors, chief financial officer at Microsoft. “Going into the new year, we will continue to focus on providing better customer value, growing opportunities with small and medium businesses, increasing our enterprise penetration and improving performance in our emerging businesses.”

Broken down geographically, the largest jump in Microsoft’s fourth-quarter revenue figures came from the Europe, Middle East and Africa (EMEA) region with a staggering 43pc rise to US$1.75bn. Turnover rose by 3pc in the Americas to $2.99bn; and up 7pc to US$835m in Japan and the Asia-Pacific region, the company said. The growth in EMEA was due in no small part to favourable foreign exchange rates, without which, revenue in the region would have been closer to 27pc. Microsoft employs close to 1,600 people in Ireland.

Looking ahead, Microsoft said it expects revenues for the next financial year to 30 June 2004 to be between US$34.2bn and US$34.9bn. Operating income is expected to be in the range of US$11.3bn and US$11.6bn, including equity compensation expense of approximately US$3.9bn.

By Gordon Smith