rof||e

MlcrosofL founded ln 1973 by 8lll CaLes and aul Allen ls a veLeran sofLware company besL known for
lLs MlcrosofL Wlndows operaLlng sysLem and Lhe MlcrosofL Cfflce sulLe of producLlvlLy sofLware SLarLlng
ln 1980 MlcrosofL formed a parLnershlp wlLh l8M allowlng MlcrosofL Lo sell lLs sofLware package wlLh
Lhe compuLers l8M manufacLured MlcrosofL ls wldely used by professlonals worldwlde and largely
domlnaLes Lhe Amerlcan corporaLe markeL AddlLlonally Lhe company has venLured lnLo hardware wlLh
consumer producLs such as Lhe Zune and xbox MlcrosofL has made a presence on Lhe Web wlLh Lhe
MSn lnLerneL porLal and 8lng Search Lnglne
Locat|on
MlcrosofL reaches cusLomers aL sales offlces supporL cenLers and Lechnology cenLers LhroughouL uSA
roduct L|ne
MlcrosofL runs Lhe buslness ln much Lhe same way and lL belleves lLs flve buslness dlvlslons offer Lhe
greaLesL poLenLlal Lo serve lLs cusLomers 1hey are
O Wlndows Wlndows Llve ulvlslon lncludes Lhe Wlndows producL famlly and ls responslble for
our relaLlonshlps wlLh personal compuLer manufacLurers as well as onllne sofLware and servlces
Lhrough Wlndows Llve
O Server and 1ools SofLware server producLs servlces and soluLlons lncludlng Wlndows Server
operaLlng sysLem MlcrosofL SCL Server vlsual SLudlo SllverllghL SysLem CenLer producLs
lorefronL securlLy producLs 8lz 1alk Server and MlcrosofL ConsulLlng Servlces
O Cnllne Servlces ulvlslon ConslsLs of an onllne adverLlslng plaLform wlLh offerlngs for publlshers
and adverLlsers and onllne lnformaLlon offerlngs such as 8lng and Lhe MSn porLals and
channels
O MlcrosofL 8uslness ulvlslon lncludes Lhe MlcrosofL Cfflce sulLes deskLop programs servers and
servlces and soluLlons MlcrosofL uynamlcs and unlfled CommunlcaLlons buslness soluLlons
O LnLerLalnmenL and uevlces ulvlslon ConslsLs of Lhe xbox vldeo game sysLem lncludlng consoles
and accessorles xbox Llve operaLlons Zune dlglLal muslc and enLerLalnmenL devlce
Medlaroom moblle and embedded devlce plaLforms Surface compuLlng plaLform and
Wlndows AuLomoLlve






egment kevenue
ear ended Iune 30 (|n m||||on
Change 2011 over
2010
Change 2010 over
2008 2011 2010 2009
MlcrosofL Cfflce SysLem 11676 9864 20730 17734 17998
Wlndow C CperaLlng SysLem 9781 12438 17823 18223 14633
Server producLs 11036 10384 13231 12007 11344
xbox 360 plaLform 14832 9963 8103 3436 3473
ConsulLlng and producL supporL servlce 11107 10040 3372 3036 3024
AdverLlslng 11323 10780 2913 2328 2343
CLher 10779 9666 3749 3478 3398
1ota| 69943 62484 S8437

As we can see from Lhe above charL LhaL Lhe Cfflce producLs are sLlll ln demand as Lhere has been a
growLh ln 2011 8uL aL Lhe same Llme new operaLlng sysLems are eaLlng lnLo Lhe share of MlcrosofL
CorporaLlon 1he server gamlng (xbox) consulLlng and adverLlslng are sLlll showlng a growLh and Lhus
we can see MlcrosofL growlng ln Lerms of revenues 8uL Lhe onllne dlvlslon llke MSn and 8llng have
reporLed an operaLlng loss

n|story
ln 1983 MlcrosofL announced Lhe developmenL of Wlndows a graphlcal user lnLerface (Cul) for lLs own
operaLlng sysLem (MSuCS) whlch had shlpped for l8M C and compaLlble compuLers slnce 1981 1he
producL llne has changed from a Cul producL Lo a modern operaLlng sysLem over Lwo famllles of deslgn
each wlLh lLs own codebase and defaulL flle sysLem 1he 3x and 4x famlly lncludes Wlndows 311
Wlndows 93 Wlndows 98 and Wlndows Me Wlndows for Workgroups 311 achleved Lhe breakLhrough
from 16 Lo 32blL neLworklng and 32blL dlsk access Wlndows 93 compleLed Lhe mlgraLlon Lo 32blL
code and sLarLed an enLlrely new user lnLerface mosL of whlch ls sLlll used Loday
Wlndows n1 famlly sLarLed wlLh n1 31 ln 1993 Modern Wlndows operaLlng sysLem verslons are based
on Lhe newer Wlndows n1 kernel LhaL was orlglnally lnLended for CS/2 Wlndows runs on lA32 x8664
and lLanlum processors Larller verslons also ran on Lhe l860 Alpha MlS lalrchlld Cllpper and
owerC archlLecLures Some work was done Lo porL lL Lo Lhe SA8C archlLecLure 1he n1 kernel
borrows many Lechnlques from vMS WlLh n140 ln 1996 Lhe shell changed from rogram Manager Lo
Lxplorer Cu supporL lncluded owerC MlS and uLC Alpha for earller verslons of n1 buL focuses on
lLanlum 386 486 and x64 Loday MlcrosofL ls also worklng Lo brlng Wlndows n1 onLo A8M ln Lhe nexL
release of Wlndows


|nanc|a| Ana|ys|s
L8lu1A Margln 4220
8eLurn on Common SLockholders LqulLy
8aLlo
42
lree Cash llow $222
Leverage 8aLlo 18
rlce/8ook value 371
rlce/Larnlngs 8aLlo 96
Cash flow/share $312
8ecelvables per uay Sales $3139
AsseLs 1urnover 8aLlo 07
8eLurn on AsseLs 8aLlo 2190
uebL Lo 1oLal AsseL 8aLlo 017
8ecelvables 1urnover 72
Worklng CaplLal per Share 391
CurrenL 8aLlo
29
Cross roflL 8aLe 8320
roflL Margln 8aLlo 2920
lnvenLory 1urnover 8aLlo 76
uays ln lnvenLory 47

8evenue per Lmployee $777144
roflL per Lmployee $ 237222
ulrecL labor expense as a percenLage of revenue 129
ear Lnded Iune 30 change 2011]2010 change 2010]2009

8evenue
012 007
CperaLlng expenses

CosL of revenue
026 002
8esearch and developmenL 004 003
Sales and markeLlng
003 003
Ceneral and admlnlsLraLlve 004 001
1oLal operaLlng expenses 011 001
CperaLlng lncome
013 018
CLher lncome (expense)
001 269
lncome before lncome Laxes
012 026
rovlslon for lncome Laxes
021 019
neL lncome
023 029

uture |ans
MlcrosofL plans Lo brlng ouL producLs whlch wlll resulL ln dlglLal experlences whlch wlll grow ouL of Lhe
comblnaLlon of four Lhlngs smarL devlces cloudbased servlces naLural forms of lnLeracLlon beLween
people and Lechnology and flnally people's lmaglnaLlons
1hey plan Lo creaLe and sell greaL sofLware for every day all round use lncreaslngly Lhe full value and
beneflL of sofLware wlll be opLlmlzed and expressed ln Lhe servlces and devlces LhaL people use aL work
and ln Lhelr personal llves
WlLh Lhe assumpLlon LhaL Lhe number of devlces on whlch sofLware wlll run wlll lncrease dramaLlcally
1hey plan Lo bulld some devlces llke Lhe xbox and work ln close parLnershlp wlLh C LableL phone and
oLher manufacLurers around Lhe world Lo deslgn powerful and compelllng devlces LhaL consumers love
and buslnesses need
1hey are looklng ahead Lo Wlndows 8 wlLh confldence and exclLemenL and Lhe verslon of Wlndows LhaL
bullds on Lhe advancemenLs ln cloud compuLlng on Louch lnLerfaces and oLher naLural ways Lo lnLeracL
wlLh Lechnology ls belng worked upon
1hey are also lnvesLlng ln naLural ways for people Lo lnLeracL wlLh Lechnology lor example lnLroduclng
Lhe advances of klnecL beyond enLerLalnmenL Lo buslness sclence educaLlon and medlclne by
connecLlng lL Lo Lhe Wlndows C and Lhe Wlndows hone




8eferences
hLLp//lnadvfncom/pphp?pldflnanclalssymbolnMSl1
hLLp//flnappsforbescom/flnapps/[sp/flnance/complnfo/8aLlos[sp?LkrMSl1
hLLp//lnflnanceyahoocom/q/ks?sMSl1