Contents tagged with Financial MSFT

  • Microsoft Announces 23 Percent Increase in Quarterly Dividend

    Posted by sumeethevans on September 23 2010, 10:39 PM. Posted in Financial MSFT.

    Microsoft today announced that its board of directors declared a quarterly dividend of $0.16 per share, reflecting a 3 cent or 23 percent increase over the previous quarter’s dividend. The dividend is payable December 9, 2010 to shareholders of record on November 18, 2010. The ex-dividend date will be November 16, 2010.

    A chart of Microsoft’s quarterly dividends per share from September 2004 – present. For the ten years ending June 30, 2010, Microsoft has returned nearly $170 billion to shareholders through dividends and share repurchases.

    A chart of Microsoft’s quarterly dividends per share from September 2004 – present. For the ten years ending June 30, 2010, Microsoft has returned nearly $170 billion to shareholders through dividends and share repurchases.

    Click for larger image.

    "This higher dividend, combined with our ongoing share repurchase program, reflects our commitment to returning capital to our shareholders and our confidence in the long-term growth of the company,” said Peter Klein, chief financial officer of Microsoft.

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  • Microsoft Reports Record Fourth-Quarter Results

    Posted by sumeethevans on July 23 2010, 4:37 AM. Posted in Financial MSFT.

    Microsoft Corp. today announced record fourth-quarter revenue of $16.04 billion for the quarter ended June 30, 2010, a 22% increase from the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $5.93 billion, $4.52 billion and $0.51 per share, which represented increases of 49%, 48% and 50%, respectively, when compared with the prior year period.

    “This quarter’s record revenue reflects the breadth of our offerings and our continued product momentum,” said Peter Klein, chief financial officer. “The revenue growth, combined with our ongoing cost discipline, helped us achieve another quarter of margin expansion.”

    Product momentum continued during the quarter with the successful launch of Office 2010 and strong performance from existing products including Windows 7, which has sold more than 175 million licenses to date, Windows Server, Xbox, and Bing, which achieved its 13th consecutive month of share gain.

    For the fiscal year ended June 30, 2010, Microsoft reported record revenue of $62.48 billion, a 7% increase from the prior year. Operating income, net income and diluted earnings per share for the year were $24.10 billion, $18.76 billion and $2.10, which represented increases of 18%, 29% and 30%, respectively, when compared with the prior year.

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  • Microsoft’s Annual Revenue Reaches $60 Billion

    Posted by bink on July 18 2008, 3:28 AM. Posted in Financial MSFT.

    Fastest annual revenue growth since 1999 fuels 32% increase in earnings per share.

     Microsoft Corp. today announced revenue of $15.84 billion for the fiscal fourth quarter ended June 30, 2008, an 18% increase over the same period of the prior year. Operating income and diluted earnings per share for the quarter were $5.68 billion and $0.46, representing growth of 42% and 48%, respectively, over the same period of the prior year.

    For the fiscal year ended June 30, 2008, Microsoft announced revenue of $60.42 billion, an 18% increase over the prior year. Operating income and diluted earnings per share for the year were $22.49 billion and $1.87, representing yearly growth of 21% and 32%, respectively.

    The growth rates for operating income and diluted earnings per share were impacted by a $1.1 billion charge in the fourth quarter of fiscal year 2007 related to the expansion of the company's Xbox 360 warranty coverage.

    "Delivering $60 billion in annual revenue is an outstanding accomplishment and a testament to the powerful combination of great technology solutions and strong execution by our partners and global sales and marketing teams," said Kevin Turner, chief operating officer at Microsoft.  "The outlook for fiscal year 2009 is positive given the breadth of our impressive technology portfolio and the expanding collection of online services we are bringing to market."

    This fiscal year marked the launch of Microsoft's flagship server products: Windows Server 2008, SQL Server 2008 and Visual Studio 2008. Revenue growth was primarily driven by continued customer demand for all products, including Windows Vista, which has sold over 180 million licenses since launch, the 2007 Microsoft Office system, server software, and Xbox 360 consoles and games.

    "We had a strong finish in the fourth quarter, which capped off an impressive year for the company. We grew revenue 18% for the year with earnings per share significantly outpacing that," said Chris Liddell, chief financial officer at Microsoft.  "Looking forward, despite difficult economic conditions, we will build upon the momentum exiting fiscal year 2008 and expect to deliver another year of double-digit revenue and earnings growth in fiscal year 2009."

    Business Outlook

    Microsoft management offers the following guidance for the quarter ending September 30, 2008:

    Revenue is expected to be in the range of $14.7 billion to $14.9 billion.

    Operating income is expected to be in the range of $5.9 billion to $6.0 billion.

    Diluted earnings per share are expected to be $0.47 or $0.48.

    Management offers the following guidance for the full fiscal year ending June 30, 2009:

    Revenue is expected to be in the range of $67.3 billion to $68.1 billion.

    Operating income is expected to be in the range of $26.3 billion to $26.9 billion.

    Diluted earnings per share are expected to be in the range of $2.12 to $2.18.

  • Microsoft to take 100% control of MSN Israel portal

    Posted by bink on July 7 2008, 12:56 AM. Posted in MSN, Financial MSFT.

    Microsoft Corp. plans to acquire the 50.1% it doesn't already own in MSN Israel Ltd. from partner Internet Gold Ltd., the companies said on Sunday.

    The companies said in a statement that they're "discussing the terms of migration and possible future cooperation." Meantime, they're still "working together to support employees, advertisers and users."

    MSN Israel, established in 2000, is part of the Redmond, Wash., software giant's portal network, which operates in 44 countries. In almost all these countries, Microsoft wholly owns the portals, the companies said.
    "Given the change in the parties' online strategies, we have agreed it makes sense for Microsoft to operate msn.co.il independently,"
     
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  • Yahoo says to consider Microsoft's $44.6 billion offer

    Posted by bink on February 1 2008, 11:35 PM. Posted in Financial MSFT.

    Yahoo Inc confirmed on Friday that it had received an unsolicited bid from Microsoft Corp to acquire the company and that its board of directors would consider the $44.6 billion deal.

    Yahoo said in a statement that its board would evaluate the proposal "carefully and promptly in the context of Yahoo's strategic plans and pursue the best course of action to maximize long-term value for shareholders."

  • Microsoft wants Yahoo for its users, say analysts

    Posted by bink on February 1 2008, 11:33 PM. Posted in Financial MSFT.

    Microsoft's $44.6bn (£22.6) bid to buy Yahoo could backfire if not executed properly, according to analysts — but the phenomenal price may be worth paying to fend off the challenge from Google.

    Microsoft announced on Friday that it was making a further attempt to acquire Yahoo after approaching the company's board in February 2007. If the deal goes through — and many think it will — it could go some way to closing the gap Microsoft and Yahoo have endured between themselves and web-ad leader Google. 

    "Microsoft needs to beef up its content capabilities," said analyst Andy Buss of Canalys. "Google is becoming a behemoth and Microsoft has been feeling left out." As well as chipping away at Google's 75 percent share of the online-advertising market, Microsoft also wants to use Yahoo's online users to drive a move to subscription services, he said.

    "Yahoo used to be a leader, but it has been struggling under the onslaught of Google's development of internet-based services," said Buss. Combining forces removes one competitor and could build an online presence that might finally reverse Google's rise, he added.

    Microsoft is making no secret of the fact that it wants Yahoo not so much for its technology but its members. The online-advertising business relies on scale, pointed out Chris Liddell, chief financial officer for Microsoft, on a conference call on Friday to discuss the proposed deal.

    "Microsoft's consistent belief has been that the combination of Microsoft and Yahoo clearly represents the best way to deliver maximum value to our respective shareholders, as well as create a more efficient and competitive company that would provide greater value and service to our customers," wrote Microsoft chief executive Steve Ballmer in his letter to the Yahoo board.

    The two companies combined can get better economies of scale, said Ballmer, to compete with Google, and "offer a credible alternative for consumers, advertisers and publishers". Microsoft is expected to use Yahoo's research and development arms to augment its own software-as-a service offerings, and combine the two user bases of Yahoo and MSN/Windows Live into one.

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  • Stocks fall on unease over bond insurers

    Posted by bink on February 1 2008, 11:30 PM. Posted in Financial MSFT.

    Stocks gave up an early rally Friday after a weak construction spending report and a warning from Moody's that it will likely downgrade bond insurers offset enthusiasm over Microsoft Corp.'s bid for Internet company Yahoo Inc.

    The market began the day with investors pleased by Microsoft's bid of $31 per share for Yahoo, for a total of $44.6 billion. The offer represents a 62 percent premium to Yahoo's closing stock price Thursday. Merger news, which has been in short supply for months, tends to energize the stock market, and the bid for Yahoo put the market in a good mood.

    But a mix of economic news reminded investors of the continuing fallout from the housing and mortgage crisis.

    The first blow came from the Labor Department's worrisome employment report for January. The economy lost 17,000 jobs, marking the first contraction of the labor market in more than four years. The news confounded economists, who were expecting 70,000 new jobs, according to Thomson/IFR.

    The news was somewhat mitigated by an upward revision to November payrolls and news that the unemployment rate ticked lower to 4.9 percent last month from 5.0 percent in December.

    The Commerce Department added to the fray, reporting that construction spending dropped 1.1 percent in December — twice what analysts expected and the most in 15 months.

     

  • Microsoft Proposes Acquisition of Yahoo! for $31 per Share

    Posted by bink on February 1 2008, 7:25 PM. Posted in Financial MSFT.

    Transaction valued at approximately $44.6 billion in cash and stock; provides 62 percent premium to current trading price for Yahoo! shareholders; combined entity to create a more competitive company, providing superior value to shareholders, better choice and innovation for customers and partners

    REDMOND, Wash. — Feb. 1, 2008 — Microsoft Corp. (NASDAQ:MSFT) today announced that it has made a proposal to the Yahoo! Inc. (NASDAQ:YHOO) Board of Directors to acquire all the outstanding shares of Yahoo! common stock for per share consideration of $31 representing a total equity value of approximately $44.6 billion. Microsoft’s proposal would allow the Yahoo! shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the total consideration payable to Yahoo! shareholders consisting of one-half cash and one-half Microsoft common stock. The offer represents a 62 percent premium above the closing price of Yahoo! common stock on Jan. 31, 2008.

    “We have great respect for Yahoo!, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market,” said Steve Ballmer, chief executive officer of Microsoft. “We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners.”

    “Our lives, our businesses, and even our society have been progressively transformed by the Web, and Yahoo! has played a pioneering role by building compelling, high-scale services and infrastructure,” said Ray Ozzie, chief software architect at Microsoft. “The combination of these two great teams would enable us to jointly deliver a broad range of new experiences to our customers that neither of us would have achieved on our own.”

    The online advertising market is growing at a very fast pace, from over $40 billion in 2007 to nearly $80 billion by 2010. The resulting benefits of scale along with the associated capital costs for advertising platform providers make this a time of industry consolidation and convergence. Today this market is increasingly dominated by one player. Together, Microsoft and Yahoo! can offer a competitive choice while better fulfilling the needs of customers and partners.

    “The combined assets and strong services focus of these two companies will enable us to achieve scale economics while reaching R&D critical mass to deliver innovation breakthroughs,” said Kevin Johnson, president of the Platforms & Services Division of Microsoft. “The industry will be well served by having more than one strong player, offering more value and real choice to advertisers, publishers and consumers.”

    The combination will create a more efficient company with synergies in four areas: scale economics driven by audience critical mass and increased value for advertisers; combined engineering talent to accelerate innovation; operational efficiencies through elimination of redundant cost; and the ability to innovate in emerging user experiences such as video and mobile. Microsoft believes these four areas will generate at least $1 billion in annual synergy for the combined entity.

    Microsoft has developed a plan and process that will include the employees of both companies to focus on the integration of the combined business. Microsoft intends to offer significant retention packages to Yahoo! engineers, key leaders and employees across all disciplines.

    Microsoft believes this proposed combination would receive all necessary regulatory approvals and expects that the proposed transaction would be completed in the second half of calendar year 2008.

    Microsoft is also committed to working closely with Yahoo! management and its Board of Directors as they, along with Yahoo! shareholders, evaluate this compelling proposal.

    Below is the text of the letter that Microsoft sent to Yahoo!’s Board of Directors:

     

    January 31, 2008

     

     

    Board of DirectorsYahoo! Inc.701 First AvenueSunnyvale, CA 94089Attention: Roy Bostock, ChairmanAttention: Jerry Yang, Chief Executive Officer

     

    Dear Members of the Board:

    I am writing on behalf of the Board of Directors of Microsoft to make a proposal for a business combination of Microsoft and Yahoo!. Under our proposal, Microsoft would acquire all of the outstanding shares of Yahoo! common stock for per share consideration of $31 based on Microsoft’s closing share price on January 31, 2008, payable in the form of $31 in cash or 0.9509 of a share of Microsoft common stock. Microsoft would provide each Yahoo! shareholder with the ability to choose whether to receive the consideration in cash or Microsoft common stock, subject to pro-ration so that in the aggregate one-half of the Yahoo! common shares will be exchanged for shares of Microsoft common stock and one-half of the Yahoo! common shares will be converted into the right to receive cash. Our proposal is not subject to any financing condition.

    Our proposal represents a 62% premium above the closing price of Yahoo! common stock of $19.18 on January 31, 2008. The implied premium for the operating assets of the company clearly is considerably greater when adjusted for the minority, non-controlled assets and cash. By whatever financial measure you use - EBITDA, free cash flow, operating cash flow, net income, or analyst target prices - this proposal represents a compelling value realization event for your shareholders.

    We believe that Microsoft common stock represents a very attractive investment opportunity for Yahoo!’s shareholders. Microsoft has generated revenue growth of 15%, earnings growth of 26%, and a return on equity of 35% on average for the last three years. Microsoft’s share price has generated shareholder returns of 8% during the last one year period and 28% during the last three year period, significantly outperforming the S&P 500. It is our view that Microsoft has significant potential upside given the continued solid growth in our core businesses, the recent launch of Windows Vista, and other strategic initiatives.

    Microsoft’s consistent belief has been that the combination of Microsoft and Yahoo! clearly represents the best way to deliver maximum value to our respective shareholders, as well as create a more efficient and competitive company that would provide greater value and service to our customers. In late 2006 and early 2007, we jointly explored a broad range of ways in which our two companies might work together. These discussions were based on a vision that the online businesses of Microsoft and Yahoo! should be aligned in some way to create a more effective competitor in the online marketplace. We discussed a number of alternatives ranging from commercial partnerships to a merger proposal, which you rejected. While a commercial partnership may have made sense at one time, Microsoft believes that the only alternative now is the combination of Microsoft and Yahoo! that we are proposing.

    In February 2007, I received a letter from your Chairman indicating the view of the Yahoo! Board that “now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction.” According to that letter, the principal reason for this view was the Yahoo! Board’s confidence in the “potential upside” if management successfully executed on a reformulated strategy based on certain operational initiatives, such as Project Panama, and a significant organizational realignment. A year has gone by, and the competitive situation has not improved.

    While online advertising growth continues, there are significant benefits of scale in advertising platform economics, in capital costs for search index build-out, and in research and development, making this a time of industry consolidation and convergence. Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers. Synergies of this combination fall into four areas:

    Scale economics: This combination enables synergies related to scale economics of the advertising platform where today there is only one competitor at scale. This includes synergies across both search and non-search related advertising that will strengthen the value proposition to both advertisers and publishers. Additionally, the combination allows us to consolidate capital spending.

    Expanded R&D capacity: The combined talent of our engineering resources can be focused on R&D priorities such as a single search index and single advertising platform. Together we can unleash new levels of innovation, delivering enhanced user experiences, breakthroughs in search, and new advertising platform capabilities. Many of these breakthroughs are a function of an engineering scale that today neither of our companies has on its own.

    Operational efficiencies: Eliminating redundant infrastructure and duplicative operating costs will improve the financial performance of the combined entity.

    Emerging user experiences: Our combined ability to focus engineering resources that drive innovation in emerging scenarios such as video, mobile services, online commerce, social media, and social platforms is greatly enhanced.

    We would value the opportunity to further discuss with you how to optimize the integration of our respective businesses to create a leading global technology company with exceptional display and search advertising capabilities. You should also be aware that we intend to offer significant retention packages to your engineers, key leaders and employees across all disciplines.

    We have dedicated considerable time and resources to an analysis of a potential transaction and are confident that the combination will receive all necessary regulatory approvals. We look forward to discussing this with you, and both our internal legal team and outside counsel are available to meet with your counsel at their earliest convenience.

    Our proposal is subject to the negotiation of a definitive merger agreement and our having the opportunity to conduct certain limited and confirmatory due diligence. In addition, because a portion of the aggregate merger consideration would consist of Microsoft common stock, we would provide Yahoo! the opportunity to conduct appropriate limited due diligence with respect to Microsoft. We are prepared to deliver a draft merger agreement to you and begin discussions immediately.

    In light of the significance of this proposal to your shareholders and ours, as well as the potential for selective disclosures, our intention is to publicly release the text of this letter tomorrow morning.

    Due to the importance of these discussions and the value represented by our proposal, we expect the Yahoo! Board to engage in a full review of our proposal. My leadership team and I would be happy to make ourselves available to meet with you and your Board at your earliest convenience. Depending on the nature of your response, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.

    We believe this proposal represents a unique opportunity to create significant value for Yahoo!’s shareholders and employees, and the combined company will be better positioned to provide an enhanced value proposition to users and advertisers. We hope that you and your Board share our enthusiasm, and we look forward to a prompt and favorable reply.

    Sincerely yours,

    /s/ Steven A. Ballmer

    Steven A. Ballmer

    Chief Executive Officer

    Microsoft Corporation

  • Microsoft beats quarterly estimates, raises forecast

    Posted by sumeethevans on January 25 2008, 4:29 AM. Posted in Financial MSFT.

    Microsoft's quarterly results, released a few minutes ago, beat Wall Street expectations with earnings per share of 50 cents and revenue of $16.37 billion, an increase of 30 percent over the same quarter last year.

    The company cited strength in its PC Windows division, Microsoft Business Division and Server & Tools. Analysts polled by Thomson Financial had been expecting earnings per share of 46 cents on revenue of $15.9 billion.

    (In assessing the growth rate for the recent quarter, note that Microsoft deferred $1.64 billion in revenue from the same quarter last year, because of the Windows Vista and Office delays. Had that revenue been counted then, the growth rate would have been 15 percent this quarter.)

    In addition, the company raised its revenue and earnings projections for the year, despite the broad economic uncertainty that has affected other tech companies this week. The company is now looking for annual revenue of $59.9 billion to $60.5 billion (up from the previous forecast of $58.8 billion to $59.7 billion) and earnings per share of $1.85 to $1.88 (previously $1.78 to $1.81).

    It's Microsoft's second straight quarter of unusually strong results. The company has a conference call with analysts at 2:30. More details and divisional results to come ...

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  • Microsoft expected to post sharp profit rise

    Posted by sumeethevans on January 23 2008, 10:49 AM. Posted in Financial MSFT.

    Microsoft is expected to report a sharp rise in quarterly profit this week, boosted by surging revenue as strong computer sales drive demand for its Windows operating system and Office software.

    Investors will also look at its full-year outlook to see if the world's largest software maker can maintain momentum from a strong first quarter in the face of growing concerns over the U.S. economy. Microsoft reports fiscal second-quarter results on Thursday.

    Economic concerns and stock market declines have erased the share price gains that followed its first-quarter results, but analysts said personal computer sales figures last week suggest any economic softness did not weigh on year-end demand.

    "We're looking for Microsoft to continue to have positive results. Last quarter was one of the best we've seen from it in a very long time and we think the company is certainly headed in the right direction," said Andy Miedler, technology analyst at Edward Jones.

    Analysts, on average, forecast Microsoft to post a 66 percent rise in quarterly net profit to $4.35 billion, or 46 cents per share, on a 27 percent increase in revenue to $15.93 billion, according to Reuters Estimates.

    Those growth rates are exaggerated by the results in the year-ago period, when Microsoft deferred more than $1 billion in net income due to delays in releasing Windows Vista and Office 2007, which hit stores in early 2007.

    Last week, research firm IDC said global PC sales rose 15.5 percent in the October-to-December period, while rival firm Gartner put worldwide computer sales growth at 13.1 percent.

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  • Microsoft Furnishes Financial Statements Using New Interactive Data Tags

    Posted by sumeethevans on December 8 2007, 12:02 PM. Posted in Financial MSFT.

    Microsoft Corp. yesterday filed a Form 8-K furnishing financial information from its Form 10-Q for the quarter ended Sept. 30, 2007, in interactive data format. With this filing, Microsoft was the first company to provide financial information using newly issued sets of interactive data tags — or taxonomies — that use Extensible Business Reporting Language (XBRL) technology. Microsoft furnished a full set of financial information including its financial statements, footnotes, and Management’s Discussion and Analysis using the latest U.S. Generally Accepted Accounting Principles taxonomy released by XBRL US on Dec. 5, 2007.

    In providing interactive financial information under the newly released taxonomies, Microsoft continues its long-standing support of the Securities and Exchange Commission’s (SEC) vision to offer investors the power of financial information in XBRL. Microsoft has been a pilot participant in the SEC’s voluntary XBRL filer program since 2005.

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  • Microsoft Highlights Strong Financial Performance at Annual Shareholder Meeting

    Posted by sumeethevans on November 14 2007, 1:39 AM. Posted in Financial MSFT.

    Microsoft Corp. today held its annual shareholder meeting, where Microsoft Chief Executive Officer Steve Ballmer discussed the company’s plans to drive continued long-term growth and shareholder value. Ballmer highlighted the positive customer momentum behind the company’s pipeline of product advancements, noting the strong response to Windows Vista and the 2007 Microsoft Office system, as well as new product offerings such as the updated Windows Live Services and “Halo 3” and upcoming releases such as Windows Server and Microsoft SQL Server. Furthermore, new models of Zune digital music players became available in stores today.

    Bill Gates, chairman of Microsoft, outlined how Microsoft’s strategy of investing in innovation allows it to shape the future of technology. He specifically cited advances in unified communications and collaboration, the combination of software on client devices and services delivered via the Internet, and the emergence of natural user interfaces such as speech and touch as having the potential to fundamentally transform how people interact with technology.

    “Last year, we significantly ramped up our growth by executing well and continuing our strategy of investing broadly in innovation,” Ballmer said. “This year and beyond, we see tremendous opportunities for more strong growth and solid financial returns both from our current businesses and through expansion into new markets.”

    At the annual shareholder meeting, the following proposals were acted on by the company’s shareholders:

    Elected 10 directors to serve until the next annual meeting of shareholders

    Ratified the selection of Deloitte & Touche LLP as the company’s independent auditor for fiscal year 2008

    Voted down two shareholder proposals

    All actions were taken with a vote of over 95 percent.

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