Microsoft Corp. today announced record revenue of $10.15 billion for the quarter ended Dec. 31, 2003, a 19% increase over $8.54 billion in the prior year. Operating income for the second quarter was $1.48 billion, compared to $2.23 billion in the prior year. Net income and diluted earnings per share for the second quarter were $1.55 billion and $0.14 per share. These results include stock based compensation expense of $2.17 billion (after-tax) or $0.20 per share, of which $1.48 billion (after-tax) or $0.14 per share related to the completion of the employee Stock Option Transfer Program. For the previous year, net income and earnings per share for the second quarter were $1.87 billion and $0.17 per share, including stock based compensation expense of $709 million (after-tax) or $0.07 per share, a $282 million (after-tax) or $0.03 per share charge for investment impairments, a $126 million or $0.01 per share tax benefit from the reversal of previously accrued taxes, and $141 million (after-tax) or $0.01 per share legal charge related to the state antitrust and unfair competition class action lawsuits.