Revenue and Profit (Loss) by Business Segment

Microsoft reports financial results in five business segments.

Client includes desktop OSs.

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

Server & Tools includes server platform software such as Windows Server and SQL Server, developer tools, and support and consulting services.

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

Online includes Windows Live and MSN.

This chart shows revenue and operating income or loss for each business segment for Q2’07 and the same quarter a year ago. The last column shows the percentage change in revenue between Q2’07 and the same quarter a year ago. The row Corporate Expenses counts expenses that cannot be attributed to any single business segment, including legal expenditures and broad-based marketing and administrative expenses.

All numbers are reported in accordance with Generally Accepted Accounting Principles (GAAP). Total operating income (loss) figures do not include gains and losses from investments or taxes. Income figures for Q2’06 are from the company’s Q2’07 earnings release and differ in some segments by up to US$33M from those reported in the Q2’06 earnings release due to reallocation of income among segments.