Q4'03 Profit and Loss Numbers; Dividend Doubled

The Client and Information Worker business units made lower profits in the last quarter of fiscal year 2003 than in the first three quarters as a result of higher marketing costs and seasonal factors, according to a recent filing with the U.S. Securities and Exchange Commission. The filing also showed that MSN narrowed its losses significantly in the same quarter, which ended June 30, 2003.

Microsoft also indicated it will defer less revenue from OEM and retail sales of desktop software, and will recognize this deferred revenue over a longer period of time. This change reflects longer development cycles for new versions and fewer incremental updates to Office and Windows, and it will lead to a small (between 1% and 3%) increase in short-term revenue, particularly in the Client and Information Worker businesses, and a corresponding decrease in unearned revenue.

Finally, the company announced it would pay a US$0.16 per share dividend to shareholders in Nov. 2003.