Friday, December 09, 2005

Interesting info ...About Microsoft

For the fiscal year that ended June 30th 2005 Microsoft had revenues of about $40B broken down as follows;
Client Software (Windows desktop OS) - $12.2B
Information Worker (MS Office) - $11.0B
Servers & Tools (Windows Server, SQL Server, .Net development tools) - $9.9B
Home & Entertainment (xBox) - $3.3B
MSN (MSN sites, Search) - $2.3B
Business Solutions (Great Plains, SMB business) - $0.8B
Mobile/Embedded (Windows Mobile) - $0.3B

Microsoft has grown revenues by $4B every year for the past 3 years and is likely to grow by another $4B for the fiscal year that ends June 2006. Microsoft has grown a Google every year

Yahoo is at about $4.8B total revenue and has a market cap of $58B. Ebay has annualized revenues of about $4.2B and a market cap of $63B. Microsoft has grown a Yahoo or an eBay every year too, yet has added virtually nothing to its market cap. You could also add a Siebel ($1.4B), an Adobe ($1.9B) and a Salesforce.com ($237M) combined total revenues and still not equal the growth at Microsoft.

The real key to Microsoft's growth, and value, over the next several years will be the MSN, Home &Entertainment, Business Solutions, and Mobile Embedded businesses. All great businesses with great growth prospects. Now it is all about execution.

Source: Don Dodge

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