Microsoft Corp. today announced revenue of $7.25 billion for the quarter ended June 30, 2002, a 10 percent increase over the $6.58 billion for the same quarter last year. Operating income for the fourth quarter was $2.87 billion, compared to $2.75 billion in the same period last year. Net income and diluted earnings per share for the fourth quarter of 2002 were $1.53 billion and $0.28, which included an after-tax charge for investment impairments of $806 million or $0.15. For the same period of the previous year, net income and diluted earnings per share were $65 million and $0.01, including after-tax charges for investment impairments of $2.63 billion or $0.47.

The company also announced revenue of $28.37 billion for the full fiscal year ended June 30, 2002, a 12 percent increase over the $25.30 billion reported last year. Operating income was $11.91 billion, compared to $11.72 billion in the same period last year. Net income and diluted earnings per share for fiscal year 2002 were $7.83 billion and $1.41, which included after-tax charges for investment impairments of $0.53, estimated expenses in connection with consumer class action lawsuits recorded in the December 2001 quarter of $0.08, and a one-time gain on the sale of Expedia recorded in the March 2002 quarter of $0.15. For the previous year, net income and diluted earnings per share were $7.35 billion and $1.32, which included after-tax charges for investment impairments of $0.58.

"The fourth quarter capped a great year for Microsoft, with solid revenue growth, successful product launches and our continued focus on managing costs. Robust customer demand for Windows® XP and other desktop software enabled us to deliver strong operating results this quarter, in spite of continued uncertainty in the technology markets," said John Connors, chief financial officer at Microsoft. "While the current environment remains challenging, we're making important investments in product development, marketing and in our sales force that will position us for success in the current year and beyond."