Summary
Microsoft Corporation's fiscal year 2009 (ending June 30, 2009) filing reveals a year of navigating economic headwinds, with total revenue slightly decreasing by 3% to $58.4 billion. This was primarily driven by a slowdown in PC shipments impacting the Client segment, and a decline in the Entertainment and Devices Division. Despite these revenue pressures, the company demonstrated resilience, with strong performance in its Server and Tools segment and steady results from the Microsoft Business Division. The company also managed its expenses effectively, with operating income declining by 9% and a focus on efficiency measures, including a resource management program impacting headcount. Microsoft continued its significant investment in research and development, particularly in cloud computing and natural user interfaces, indicating a strategic focus on future growth drivers. Financially, Microsoft maintained a strong liquidity position with $31.4 billion in cash, cash equivalents, and short-term investments. The company also continued its commitment to returning value to shareholders through share repurchases and dividends. While facing challenges from economic conditions and competition, including open-source models, Microsoft's diverse product portfolio and ongoing innovation efforts position it to adapt to evolving market demands.
Financial Highlights
55 data points| Revenue | $58.44B |
| Cost of Revenue | $12.15B |
| Gross Profit | $46.28B |
| R&D Expenses | $9.01B |
| Operating Expenses | $38.07B |
| Operating Income | $20.36B |
| Interest Expense | $38.00M |
| Net Income | $14.57B |
| EPS (Basic) | $1.63 |
| EPS (Diluted) | $1.62 |
| Shares Outstanding (Basic) | 8.95B |
| Shares Outstanding (Diluted) | 9.00B |
Key Highlights
- 1Revenue decreased by 3% year-over-year to $58.4 billion, reflecting the impact of the unfavorable global economic environment on PC shipments and IT spending.
- 2Operating income decreased by 9% to $20.4 billion, driven by lower revenue, although operating expenses were managed effectively.
- 3Diluted earnings per share declined by 13% to $1.62.
- 4The Client segment saw a 13% revenue decrease, largely due to PC market weakness and a lower 'OEM premium mix'.
- 5The Server and Tools segment was a bright spot, with revenue increasing by 8% and operating income growing by 17%, driven by strong adoption of Windows Server and SQL Server.
- 6The Entertainment and Devices Division experienced a 6% revenue decrease, impacted by price reductions on the Xbox 360 and lower Zune and PC game revenue, though Xbox 360 console sales and Xbox Live revenue saw increases.
- 7Microsoft ended the fiscal year with a robust cash and short-term investments balance of $31.4 billion, demonstrating strong financial liquidity.
- 8The company continued its significant investment in Research and Development, increasing R&D expenses by 10% to $9.0 billion, with a strategic focus on cloud computing and natural user interfaces.