Five Businesses: Financial Overview

Aug. 21, 2006

Beginning in FY'07, Microsoft will report finances in five business segments.

Client includes desktop OSs.

Business includes Office, Office Live, Exchange, Dynamics, and other business software.

Server & Tools includes server platform software and developer tools.

Entertainment and Devices includes Xbox, consumer hardware and software, and mobile and embedded hardware and software.

Online includes Windows Live and MSN.

Corporate Expenses includes expenses, such as legal charges and companywide marketing efforts, that cannot be attributed to any one business segment.

The following chart shows FY'05 and FY'06 revenue and operating income (loss) in each business segment, which the company revealed when it announced the new business segments, plus Microsoft's revenue estimates for FY'07. (Microsoft does not estimate operating income or loss for each business segment.)

	FY'05 Revenue	FY'05 Income (Loss)	FY'06 Revenue	FY'06 Income (Loss)	Estimated FY'07 Revenue
Client	12,151	9.403	13,209	10,182	14,266 to 14,530
Business	13,520	9,116	14,488	9,675	15,792 to 15,937
Server and Tools	8,370	2,109	9,653	3,017	11,004 to 11,101
Entertainment & Devices	3,403	(607)	4,633	(1,337)	6,069 to 6,764
Online	2,344	411	2,299	(77)	2,460 to 2,552
Corporate Expenses	N/A	(5,871)	N/A	(4,988)	N/A
Totals	39,788	14,561*	44,282	16,472*	49,700 to 50,700

All numbers in millions of U.S. dollars.

*Operating income does not include taxes, or gains and losses from investments.

Back to associated article: Five Businesses Head into FY'07

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