Summary
Microsoft Corporation reported solid financial performance for the nine months ended March 31, 2001. Revenue increased by 10% year-over-year, reaching $18.84 billion, indicating continued business growth. Net income also saw an increase, rising to $7.28 billion for the nine-month period, demonstrating effective cost management and strong sales. The company's balance sheet remains robust, with total assets growing to $59.6 billion and a significant increase in cash and short-term investments to $30.02 billion, providing ample liquidity for future investments and operations. The company continues to invest heavily in research and development, with R&D expenses increasing by 12% for the nine-month period. This investment is crucial for maintaining its competitive edge in the rapidly evolving technology sector. Microsoft also demonstrated a commitment to shareholder returns through its share repurchase program, repurchasing $4.4 billion worth of common stock during the nine months. Despite ongoing legal challenges, management expressed confidence that these matters would not materially impact the company's financial position.
Key Highlights
- 1Revenue grew 10% to $18.84 billion for the nine months ended March 31, 2001.
- 2Net income increased to $7.28 billion for the nine months ended March 31, 2001.
- 3Cash and short-term investments reached $30.02 billion as of March 31, 2001, up from $23.80 billion in the prior year.
- 4Research and development expenses increased by 12% to $3.015 billion for the nine months ended March 31, 2001.
- 5The company repurchased $4.4 billion of common stock in the first nine months of fiscal year 2001.
- 6Adoption of SFAS 133 resulted in a cumulative pre-tax reduction to income of $560 million ($375 million after-tax).
- 7The company acquired Great Plains Software, Inc. for approximately $1.1 billion on April 5, 2001.