While the Department of Justice circled Microsoft over its business practices on Monday, the company was reporting Q1 revenues of $US3.13 billion, representing growth of 36% over the same quarter last year.
Net income for the three-month period equaled $663 million, including a previously announced
$296 million write-off related to the purchase of Web TV. Without the WebTV write-off, earnings
per share of 72 cents represented an increase of 53%, compared to the 47 cents earned
during the same quarter last year.
With the WebTV acquisition taken into account, earnings per share for the quarter, which ended
September 30, totaled 50 cents.
"This was a very solid quarter across the company," said Greg Maffei, chief financial officer
at Microsoft, citing strong performances from Office 97, Windows 95, and Windows NT Server
4.0 and NT Workstation.
NT technology is gaining a stronger foothold in the enterprise, Maffei said. Sales of NT Server
were up 58%, he said, and NT Workstation now accounts for 13% of the total
Windows desktop operating system, up from 10% in the previous quarter and its highest
The quarter also saw a rise in research and development spending at Microsoft. The company
spent $567 million on research and development in the three-month period, compared to
$432 million during the same period in the previous fiscal year.
In all, the company reported $10.8 billion in total current assets. For the same period last year,
the figure was $10.37 billion.