Microsoft Earnings Up For Quarter, Year

Microsoft defied this week's rash of weak financial results from leading IT vendors and posted solid numbers for both its fiscal fourth quarter and its fiscal year 2002. For the quarter ended June 30, the software maker posted revenue of $7.25 billion, a 10% increase year over year. Net income for the quarter was $1.53 billion, or 28 cents per share, compared with net income of $65 million and per-share earnings of a penny a year ago.

For the full year, Microsoft reported revenue of $28.37 billion, up 12% from $25.30 billion the previous year. Net income on the year was $7.83 billion, or $1.41 per share. The company earned $7.35 billion, or $1.32 per share, the previous year.

Microsoft execs said strong demand for the consumer Windows XP operating system and desktop applications helped boost the numbers. And despite the tough IT spending environment, the company increased sales of its Windows server products by 13% during the quarter and 10% on the year.

Some of Microsoft's gains have come at the expense of its Unix competitors, such as Sun Microsystems, Wells Fargo Securities analyst Jonathan Guerkink says. Looking ahead, Microsoft says it expects to post revenue of between $7.0 billion and $7.1 billion for the quarter ending Sept. 30. It also expects per-share earnings of 42 or 43 cents.