Microsoft Corp has disclosed revenue figures for its individual operating segments for the first time, and the figures reveal how reliant the company is on its traditional client operating system and desktop application products.
The disclosure was made as the company filed its financial report for the first quarter of fiscal 2003 ended September 30 with the Securities and Exchange Commission. The report reveals that the company’s Client and Information Worker divisions were responsible for 66% of Microsoft’s $7.7bn revenue in the quarter, in accordance with US GAAP, and 108% of the company’s $4.1bn operating income, based on its own internal calculations.
According to the US GAAP figures, the Client division, which includes the company’s Windows PC, workstation and embedded operating systems, reported revenue of $2.8bn in the quarter, up 34% from $2.1bn in the same quarter of 2001. Meanwhile, the Information Worker division, which includes the Office, Project, Visio, SharePoint Server products and client access licenses, reported revenue of $2.3bn, up 26% from $1.8bn last year.
The Server Platforms division – which includes the company’s Windows server operating system, SQL Server, Exchange Server and Systems Management Server products as well as client access licenses, training, certification and support and consulting services – reported revenue of $1.6bn, up 13% from $1.4bn last year.
Microsoft’s Business Solutions division, which includes Microsoft Great Plains, bCentral, and the newly acquired Navision business software products, reported revenue of $106m, up 43% from $74m last year. The Home and Entertainment division, which includes the Xbox games system, PC games and TV platform, reported revenue up 81% from $267m to $485m.
The CE/Mobility division, which includes the company’s mobile operating systems, reported revenue of $17m, up 21% from $14m, while Microsoft’s MSN internet services business recorded revenue of $427m, up 22% from $348m last year.
The Client, Information Worker and Server Platforms divisions were responsible for 36.3%, 29.3% and 21% of Microsoft’s revenue in the quarter respectively and were also the only Microsoft segments to record operating income, according to the company’s own internal accounting methods.
According to these non-GAAP consolidated calculations, the Client division recorded operating income of $2.5bn on revenue of $2.9bn, the Information Worker division reported operating income of $1.9bn on revenue of $2.4bn, and the Server Platforms division recorded operating income of $519m on revenue of $1.5bn.
The Home and Entertainment division was the biggest loser, with an operating loss of $177m on revenue of $505m.The CE/Mobility division made an operating loss of $33m on revenue of $17m, while MSN recorded an operating loss of $97m on revenue of $531m. Meanwhile, the Business Solutions division reported an operating loss of $68m on revenue of $107m.