SCIENCE

REDMOND, WA -- Microsoft Corp. (Nasdaq: MSFT) today announced revenue of $25.30 billion for the fiscal year ended June 30, 2001, a 10 percent increase over the $22.96 billion reported last year. Operating income totaled $11.72 billion compared to $11.01 billion in fiscal 2000. Including the non-cash charge related to investment impairments announced on July 11, diluted earnings per share were $1.32, compared to $1.70 in fiscal 2000. The company also announced revenue of $6.58 billion for the quarter ended June 30, 2001, a 13 percent increase over the $5.80 billion for the same quarter last year. Operating income was $2.75 billion compared to $2.55 billion for the same quarter last year. Including the non-cash charge related to investment impairments announced on July 11, net income and diluted earnings per share were $66 million and $0.01. "We reported another quarter of strong revenue growth and operating income results. Even in this challenging economic environment, we saw solid customer enthusiasm for our broad array of products and services, which drove positive growth across all our businesses," said John Connors, chief financial officer at Microsoft. "We are entering fiscal 2002 with a lineup of groundbreaking new products like Office XP, Windows(R) XP, Xbox(R) and Visual Studio(R) .NET. However we continue to carefully monitor changes in the global economic environment in light of the impact they may have on our business." The Windows family of products had another standout quarter. Windows 2000 Professional experienced particularly strong growth, accounting for 41 percent of all 32-bit Windows operating systems shipped during the quarter, up from 35 percent in the March 2001 quarter. "Windows 2000 Professional turned in another incredible performance, and license sales of the Windows family of desktop operating systems exceeded $2 billion for the third consecutive quarter," said Jim Allchin, group vice president at Microsoft. "With the upcoming launch of Windows XP on October 25, we have a huge opportunity to deliver a new set of breakthrough experiences for home and business users."