By Matt Rosoff [bio]
Posted: Aug. 21, 2006

The following is a chart accompanying an article published by Directions on Microsoft, an independent research firm focused exclusively on Microsoft strategy & technology. More samples of our content, as well as a list of upcoming articles and reports are also available.

From FY'02 through FY'06, Microsoft reported financial results in seven business segments.

Client included desktop OSs.

Information Worker included Office and other productivity software.

Server and Tools included server OSs, other server software, and developer tools.

Home and Entertainment included Xbox and other consumer software and hardware.

MSN included Windows Live and MSN.

Business Solutions included Dynamics business management software.

Mobile and Embedded included OSs and platforms for mobile and embedded devices.

The following chart shows Microsoft's revenue estimates in each segment for FY'06, actual revenue for FY'06, and operating income (loss) for FY'06. It also shows approximate total revenue and operating income (loss) for the past five fiscal years in each business segment, based on the company's most recently reported figures for each quarter, with each total rounded to the nearest US$100 million. These totals are inexact because Microsoft changed the composition of some business segments during the past five years, but did not always adjust all past results accordingly.

Beginning in FY'07, Microsoft will report results in five instead of seven businesses. For details of the change, see "From Seven Businesses to Five" on page 32 of the Aug. 2006 Update.

All numbers in millions of U.S. dollars.