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  Microsoft Announces Fiscal Third Quarter Results
Time: 17:07 EST/22:07 GMT | News Source: PR Newswire | Posted By: Byron Hinson

Microsoft Corp today announced revenue of $7.25 billion for the quarter ended March 31, 2002, a 13 percent increase over the $6.40 billion reported in the prior year. Operating income totaled $3.30 billion compared to $3.00 billion in the prior year. Net income for the quarter was $2.74 billion, which includes an $847 million after-tax gain on the sale of Expedia and an $806 million after-tax charge related to investment impairments. Diluted earnings per share for the March 2002 quarter were $0.49, including a $0.15 gain on the sale of Expedia and $0.14 investment impairment charge as noted above.

``We delivered another quarter of solid revenue growth and operating results that exceeded our expectations. Desktop platform sales have been excellent on the strength of Windows® XP - both in the enterprise and in the home. We took another big bite out of costs this quarter, with single-digit operating expense growth driving costs down and efficiency up throughout the entire organization,'' said John Connors, chief financial officer at Microsoft. ``While we look forward to slightly improved PC growth rates for the next quarter, our expectations for enterprise IT spending levels continue to be quite modest.''

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