Revenue and Profit (Loss) by Business

Microsoft divides its business into the following seven areas:

Client includes the company’s desktop OSs.

Information Worker includes Office and other business productivity software and services.

Server and Tools includes all Windows server OSs and most server applications (including SQL Server and Exchange Server), server Client Access Licenses, development tools, and corporate services, such as consulting and support.

MSN includes all MSN sites and services.

Home and Entertainment includes Xbox, consumer hardware and software, and interactive TV platforms.

Business Solutions includes business management software, such as Great Plains, Navision, and MSCRM; sales and marketing initiatives for small and mid-size businesses; and the Microsoft Partner Program.

Mobile and Embedded includes Windows CE and the platforms based on it, plus other embedded OSs.

Some Q1’04 figures have changed because Microsoft has reconstituted its business segments and restated past earnings accordingly. For example, sales and marketing initiatives for small and mid-size businesses and the Microsoft Partner Program were moved from Information Worker to Business Solutions, and Professional support was moved from Information Worker to Server and Tools.