Summary
Microsoft Corporation's 2012 10-K filing reveals a company with diversified revenue streams, though facing challenges in its Windows division. Revenue grew to $73.7 billion, driven by strong performance in Server and Tools and the Microsoft Business Division (driven by Office). However, the Windows division saw a revenue decline, partly due to the PC market's slower growth and a revenue deferral related to the Windows Upgrade Offer. The company also experienced a significant operating loss in its Online Services Division due to a $6.2 billion goodwill impairment charge, primarily related to the aQuantive acquisition, impacting overall profitability for the year. Microsoft continues to invest heavily in R&D, particularly in cloud computing and smart connected devices, signaling its strategic focus on future growth areas.
Financial Highlights
55 data points| Revenue | $73.72B |
| Cost of Revenue | $17.53B |
| Gross Profit | $56.19B |
| R&D Expenses | $9.81B |
| Operating Expenses | $34.43B |
| Operating Income | $21.76B |
| Interest Expense | $380.00M |
| Net Income | $16.98B |
| EPS (Basic) | $2.02 |
| EPS (Diluted) | $2.00 |
| Shares Outstanding (Basic) | 8.40B |
| Shares Outstanding (Diluted) | 8.51B |
Key Highlights
- 1Revenue increased by 5% to $73.7 billion in fiscal year 2012, primarily driven by Server and Tools and Microsoft Business Divisions.
- 2Operating income decreased by 20% to $21.8 billion, significantly impacted by a $6.2 billion goodwill impairment charge in the Online Services Division.
- 3Diluted earnings per share decreased by 26% to $2.00, largely due to the goodwill impairment charge ($0.73 per share impact).
- 4The Windows & Windows Live Division experienced a 3% revenue decline, influenced by PC market conditions and revenue deferrals for the Windows Upgrade Offer.
- 5Server and Tools division showed robust growth with a 12% revenue increase, indicating strong enterprise adoption.
- 6The company repurchased $5.0 billion in stock and declared $6.7 billion in dividends in fiscal year 2012, demonstrating a commitment to returning capital to shareholders.
- 7Microsoft acquired Skype in October 2011 for $8.6 billion, integrating it across its divisions and driving growth in the Entertainment and Devices segment, though it contributed to the Online Services Division's impairment.