| Revenue and Growth for Selected Products |
| Aug. 13, 2007 | ||||||||||||||||||||||||||
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Chief Financial Officer Chris Liddell gave rare insight into the financial performance of specific Microsoft products in a presentation at Microsoft's July 2007 Financial Analyst Meeting (FAM). The following chart shows FY'07 revenue and the compound annual growth rate (CAGR) in revenue from FY'02 through FY'07 for several product lines. Microsoft did not reveal profits or losses for these products. Microsoft has acknowledged that the Xbox business has consistently lost money, but has not given further details. Dynamics was the main component of the former Microsoft Business Solutions segment, which was profitable in its last reported year, FY'06, but lost a little more than US$1 billion total between FY'02 and FY'06. (That business segment also included revenue from the Microsoft Partner Program, while this FY'07 revenue estimate does not.) Advertising revenue is counted within the Online business segment, which was profitable from the middle of FY'04 through FY'06, but is now losing money as Microsoft invests in areas such as search. All told, the Online segment has lost more than US$1.6 billion total since FY'02. Windows Server, SQL Server, Exchange Server, and SharePoint are probably profitable as of FY'07, and the larger of these businesses may have been profitable on a five-year basis as well.
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