Microsoft Revenue Boosted By XP

Microsoft's revenues for the year ended June 30th were 28.37 billion, compared with $25.3 billion in 2001. Operating income was $11.91 billion compared to $11.72 billion, though the company said net income was diluted due to $9.344 billion in charges based on investment write-offs and class-action law suites.

Microsoft warned that revenues for the following year will be slightly less than it had forecast in April--in the range of $31.4 and $32 billion--and for the upcoming fiscal quarter, compared with the original forecast of $31.5 billion to $32 .4 billion. Still, Microsoft sees double digit growth with server licenses.

"We believe the microeconomic environment will continue to be challenging in the short term but we do feel we are making progress building and growing a diverse set of businesses and if we execute well, our relative position in each of these businesses could be stronger," said Microsoft's CFO John Conners, during an earnings call late Thursday.

For the most recent quarter, revenues were up 10 percent, or $7.25 billion, while operating income was $2.87 billion compared to $2.75 billion.

Desktop software revenue was up 9 percent, or $4.7 billion for the quarter, and 7 percent for the year, or $18.9 billion. Client operating system revenue was up 20 percent for the year and 16 percent for the quarter. Enterprise software license revenue was up 4 percent, or $1.35 billion, for the quarter and 6 percent, or $5.11 billion, for the year. Windows Server license revenue was up 13 percent for the quarter and 10 percent for the year.