Microsoft Q4 2004 revenue up 15% to $9.29B

Computerworld - Microsoft Corp. today reported $9.29 billion in revenue for the fourth quarter of 2004, a 15% increase over the same period last year, while its fiscal 2004 revenue hit $36.8 billion, up 14% over last year. The fourth quarter ended June 30.
In an announcement today after close of financial markets in the U.S., the software maker said the increases compare favorably with the $8.07 billion in revenue it posted a year ago and with the $32.19 billion in annual revenue it earned in fiscal 2003.
Diluted earnings per share for the quarter were 25 cents, which included after-tax charges of 5 cents in stock-based compensation expense and a 2-cents-per-share tax benefit from the reversal of previously accrued taxes. In comparison, diluted earnings per share were 14 cents in the fourth quarter of 2003.
"We had a great quarter with 15% revenue growth as all of our businesses met or exceeded our expectations and our progress on cost efficacy delivered higher operating margins overall," Microsoft Chief Financial Officer John Connors said in a statement. "Fiscal 2004 was a banner year -- revenue grew 14% on strong performances from each of our seven businesses, our emerging business operating margins improved and we resolved a significant portion of our legal exposure."
In a related move, the company announced Tuesday that it will pay out about $45 billion in dividends to its shareholders over the next four years, including a special, one-time dividend of $3 per share (see story). The company's board of directors has also approved a plan to buy back up to $30 billion of Microsoft stock between now and 2008, which will bring the total disbursals through dividends and the buyback to about $75 billion over four years.
The company said that revenue in its server and tools division grew 20% compared with the prior fourth quarter, helped along by 20% growth in new Windows Server license sales.
Revenue for software including Microsoft Office grew by 23% compared with the fourth quarter of last year, the company said.
Also boosting the bottom line was the first profitable year for MSN, which moved from a $567 million loss in fiscal 2003 to a $121 million operating profit in fiscal 2004, according to the company.
Microsoft also issued a financial forecast for its first quarter ending Sept. 30, saying it expects revenue of between $8.9 billion and $9 billion for the period.
For the full 2005 fiscal year ending next June 30, the company expects revenue of $38.4 billion to $38.8 billion.

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