Microsoft Corporation (NASDAQ: MSFT, NYSE: MSFT) is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions. Established on April 4, 1975 to develop and sell BASIC interpreters for the Altair 8800, Microsoft rose to dominate the home computer operating system market with MS-DOS in the mid-1980s, followed by the Microsoft Windows line of operating systems. Microsoft would also come to dominate the office suite market with Microsoft Office. The company has diversified in recent years into the video game industry with the Xbox and its successor, the Xbox 360 as well as into the consumer electronics and digital services market with Zune, MSN and the Windows Phone OS. The ensuing rise of stock in the company's 1986 initial public offering (IPO) made an estimated four billionaires and 12,000 millionaires from Microsoft employees.
Primarily in the 1990s, critics contend Microsoft used monopolistic business practices and anti-competitive strategies including refusal to deal and tying, put unreasonable restrictions in the use of its software, and used misrepresentative marketing tactics; both the U.S. Department of Justice and European Commission found the company in violation of antitrust laws. Known for its interviewing process with obscure questions, various studies and ratings were generally favorable to Microsoft's diversity within the company as well as its overall environmental impact with the exception of the electronics portion of the business.
With annual revenues of more than $32 billion, Microsoft Corporation is more than the largest software company in the world: it is a cultural phenomenon. The company's core business is based on developing, manufacturing, and licensing software products, including operating systems, server applications, business and consumer applications, and software development tools, as well as Internet software, technologies, and services. Led by Bill Gates, the world's wealthiest individual and most famous businessman, Microsoft has succeeded in placing at least one of its products on virtually every personal computer in the world, setting industry standards and defining markets in the process.
Microsoft Corporation, incorporated in 1981, is engaged in developing, manufacturing, licensing and supporting a range of software products and services for different types of computing devices. The Company’s software products and services include operating systems for personal computers, servers and intelligent devices; server applications for distributed computing environments; information worker productivity applications; business solutions applications; computing applications; software development tools, and video games. It operates in five segments: Windows & Windows Live Division (Windows Division), Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division. It provides consulting and product and solution support services, and trains and certifies computer system integrators and developers. The Company also designs and sells hardware, including the Xbox 360 gaming and entertainment console and accessories, the Zune digital music and entertainment device and accessories, and Microsoft personal computer (PC) hardware products. In addition, it offers the enterprise client access license (eCAL) suite, which licenses access to Microsoft server software products. In October 2009, Publicis Groupe S.A. acquired Razorfish from Microsoft. Pursuant to the acquisition, Razorfish will be a wholly owned subsidiary of Publicis Groupe and a part of VivaKi, the Publicis Groupe media and digital umbrella encompassing Starcom MediaVest Group, ZenithOptimedia, Denuo, Digitas and VivaKi Nerve Center. In December 2009, the Company acquired Opalis Software Inc.
Windows & Windows Live Division
The Company’s Windows Division is engaged in the development and marketing of the Windows operating system, Windows Live and Internet Explorer. The Company’s products and services in the Windows Division includes Windows 7, including Home Basic, Home Premium, Professional, Ultimate, Enterprise and Starter Edition; Windows Vista, including Home Basic, Home Premium, Ultimate, Business, Enterprise and Starter Edition, and Windows XP Home.
The Company competes with Apple, Google, Yahoo!, Hewlett-Packard, Intel, Mozilla and Opera Software Company.
Server and Tools
The Company’s Server and Tools segment develops and markets server software, software developer tools, services. Server software is integrated server infrastructure and middleware designed to support software applications built on the Windows Server operating system and includes the server platform, database, storage, management and operations, service-oriented architecture platform, and security and identity software. Server and Tools also builds standalone and software development lifecycle tools for software architects, developers, testers and project managers. Server offerings can be run onsite, in a partner-hosted environment, or in a Microsoft-hosted environment. Its cloud-based services comprise an operating system with compute, storage and management capabilities and a relational database, both of which enables customers to run enterprise workloads and Web applications in the cloud, as well as a platform that assists developers connect applications and services in the cloud or on premise. Server and Tools offers a range of enterprise consulting and product support services (Enterprise Services) that assists customers in developing, deploying and managing Microsoft server and desktop solutions. Server and Tools also provides training and certification to developers and information technology professionals for its Server and Tools, Microsoft Business Division, and Windows & Windows Live Division products and services. The Company’s products in this segment include Windows Server operating system; Windows Azure; Microsoft SQL Server; SQL Azure; Visual Studio; Silverlight; System Center products; Biz Talk Server; Microsoft Consulting Services; Premier product support services, and other products and services.
The Company competes with Hewlett-Packard, IBM, Oracle, Novell, Red Hat, CA Technologies, BMC, VMWare, McAfee, Symantec, Trend Micro, Sybase, Adobe, Borland, Google, SAP and Salesforce.com.
Online Services Division
The Company’s Online Services Division (OSD) consists of online information offerings, such as Bing, MSN portals and channels, as well as an online advertising platform with offerings for both publishers and advertisers. The Company earns revenue primarily from online advertising, including search, display, and advertiser and publisher tools. During the fiscal year ended June 30, 2010 (fiscal 2010), it launched new releases of Bing, MSN and Advertising Platforms. Its products and services in this segment include Bing; Microsoft adCenter; MSN, and Atlas online tools for advertisers and publishers.
The Company competes with Google and Yahoo!.
Microsoft Business Division
Its Microsoft Business Division (MBD) offerings consist of the Microsoft Office system and Microsoft Dynamics business solutions. Microsoft Dynamics products provide business solutions for financial management, customer relationship management (CRM), supply chain management and analytics applications for small and mid-size businesses, large organizations, and divisions of global enterprises. Approximately 80% of MBD revenue is generated from sales to businesses, which includes Microsoft Office system revenue generated, through volume licensing agreements and Microsoft Dynamics revenue. Revenue from this category generally depends upon the number of information workers in a licensed enterprise and is therefore relatively independent of the number of PCs sold in a given year. Approximately 20% of MBD revenue is derived from sales to consumers, which includes revenue from retail packaged product sales and other equipment manufacturer’s (OEM) revenue. The products and services in this segment include Microsoft Office; Microsoft SharePoint, and Microsoft Dynamics ERP and CRM, as well as Microsoft Office Web Applications.
The Company competes with Adobe, Apple, Corel, Google, IBM, Novell, Oracle, Red Hat, Zoho, Infor, Sage, SAP, Salesforce.com, Autonomy, Cisco and Endeca.
Entertainment and Devices Division
The Entertainment and Devices Division (EDD) is responsible for developing, producing, and marketing the Xbox 360 platform, including the Xbox 360 gaming and entertainment console and accessories, third-party games, games published under the Microsoft brand, and Xbox LIVE services, as well as research, sales, and support of those products and services; PC software games; online games and services; Mediaroom (its Internet protocol television software); Windows Phone and Windows Embedded device platforms; the Zune digital music and entertainment platform; application software for Apple’s Macintosh computers, Microsoft PC hardware products and other devices. EDD is also responsible for all retail sales and marketing for retail packaged versions of the Microsoft Office system and the Windows operating systems. The products of the Company in this segment include Xbox 360 console and games; Xbox LIVE; Windows Phone; Windows Embedded device operating system; Zune; Mediaroom, and a number of consumer software and hardware products (such as Mac Office, mice and keyboards), and Windows Automotive.
The Company competes with Nintendo, Sony, Apple, Google, Nokia, Openwave Systems, Palm, QUALCOMM, Research In Motion, Symbian, IBM, Intel, Metrowerks and MontaVista Software.
In 2000 Microsoft acquired Visio Corporation, the top supplier of business diagramming and technical drawing software. The transaction, at approximately $1.3 billion, became the largest acquisition in Microsoft history. Also in 2000, Microsoft invested $135 million in the software publisher Corel. Apparently, Corel negotiated the investment, offering to drop "certain legal actions" it had against the company, even as it had no legal claims filed against Microsoft. Another transaction--in Microsoft's desire to expand into the television market--involved a $56 million investment in Intertainer Inc, a provider of video-on-demand service. In the same year, Microsoft increased its employee base by nearly 9,000, from 39,170 to 48,030. The total expenditures took a temporary toll on Microsoft's net income, which dropped 22 percent, to $7.35 billion, in 2001. At the same time, net revenue continued to increase, up 10 percent from 2000.
The release of Windows 2000, while causing a stir, was overshadowed by the highly anticipated debut and worldwide release of Microsoft Windows XP. So confident was Microsoft in the product, and in its ability to boost worldwide sales of computers (which had declined 11.3 percent since the September 11 attacks just a month before), they launched a $250 million ad campaign for the product. The software did not represent a brand new development, as much of the technology came from that of its predecessor, Windows 2000. But as Paul Thurrott, writer for Network Windows magazine, wrote, "There's no doubt that we'll eventually look back on Windows XP as one of the key OS releases of all time."
Meanwhile, the Department of Justice ruled that they would not enforce a breakup of Microsoft. By the end of 2002, the U.S. District Court approved the settlement Microsoft reached with the Justice Department. The settlement included preventing Microsoft from benefiting from exclusive deals that could hinder competition; uniform contract terms for computer manufacturers; the required ability of customers to remove icons from certain Microsoft features; and a requirement that Microsoft release specific innovational technical information to its rivals, in order to enforce competition.
Microsoft's net revenue increased to $28.37 billion in 2002, while net income rebounded, gaining 6 percent from the previous year. In 2003, Microsoft saw an impressive 28 percent jump in net income, to reach just below $10 billion. The launching of Windows Server 2003, the largest software development project in the company's history to date, contributed to the growth. According to Microsoft, Windows Server 2003 would be a more reliable, more manageable, and more collaborative piece of software. Security would also be tighter, especially due to a newly built IIS (Internet Information Server) Web Server.
By 2004, with more than 56,000 employees and anticipated year-end revenues of up to $38 billion, Microsoft continued to hold a strong lead in the computer software industry. With an emphasis on continuous innovation--including such business products as the BizTalk Server 2004--further success seemed ensured. Still, resentment toward Microsoft was omnipresent. In April 2004, the company was fined by the European Union for abusing its monopoly on computer operating systems. The fine, at EUR 497 million ($596 million), was not likely to be the last for Microsoft.
Principal Subsidiaries: Microsoft Asia, Ltd. (Nevada); Microsoft Business Solutions Aps (Denmark); Microsoft Capital Group, L.P.; Microsoft E-Holdings, Inc.; Microsoft Finance Company Ltd. (Ireland); Microsoft Ireland Capital Ltd.; Microsoft Ireland Operations Ltd.; Microsoft Licensing, Inc.; Microsoft Manufacturing BV (Netherlands); Microsoft T-Holdings, Inc.; MSLI, GP; Round Island, LLC; Round Island One Ltd.
Principal Divisions: Client; Server & Tools; Information Worker; Business Solutions; MSN; Mobile and Embedded Devices; Home and Entertainment; Other.
Principal Competitors: Apple Computer, Inc.; Hewlett-Packard Company; International Business Machines Corporation; Logitech International SA; Novell, Inc.; Sony Corporation; Sun Microsystems, Inc.; Time Warner Inc.; Yahoo! Inc.
OVERALL
Beta: 1.05
Market Cap (Mil.): $216,469.09
Shares Outstanding (Mil.): 8,432.77
Annual Dividend: 0.64
Yield (%): 2.49
FINANCIALS
MSFT.O Industry Sector
P/E (TTM): 10.17 20.66 19.91
EPS (TTM): 30.44 -- --
ROI: 32.49 9.86 15.90
ROE: 43.96 12.83 17.49
Statistics:
Public Company
Incorporated: 1981 as Microsoft, Inc.
Employees: 56,104
Sales: $32.19 billion (2003)
Stock Exchanges: NASDAQ
Ticker Symbol: MSFT
NAIC: 511210 Software Publishers; 511130 Book Publishers; 334111 Electronic Computer Manufacturing; 334119 Other Computer Peripheral Equipment Manufacturing; 423990 All Other Durable Goods Merchant Wholesalers; 443120 Computer and Software Stores; 551112 Offices of Other Holding Companies; 541613 Marketing Consulting Services; 541618 Other Management Consulting Services
Key Dates:
1975: Microsoft is founded by Bill Gates and Paul Allen; they sell BASIC, the first PC computer language program to MITS Computer, Microsoft's first customer.
1981: Microsoft, Inc. is incorporated; IBM uses Microsoft's 16-bit operating system for its first personal computer.
1982: Microsoft, U.K., Ltd. is incorporated.
1983: Paul Allen resigns as executive vice-president but remains on the board; Jon Shirley is made president of Microsoft (he later becomes CEO); Microsoft introduces the Microsoft Mouse and Word for MS-DOS 1.00.
1985: Microsoft and IBM forge a joint development agreement.
1986: Microsoft stock goes public at $21 per share.
1987: The company's first CD-ROM application, Microsoft Bookshelf, is released.
1990: Jon Shirley retires as president and CEO; Michael R. Hallman is promoted in Shirley's place; the company becomes the first PC software firm to surpass $1 billion of sales in a single year.
1992: Bill Gates is awarded the National Medal of Technology for Technological Achievement.
1993: The company introduces Windows NT.
1995: Bill Gates publishes his first book, The Road Ahead.
1996: The company acquires Vermeer Technologies and its software application, FrontPage.
1997: The Justice Department alleges that Microsoft violated a 1994 consent decree concerning licensing the Windows operating system to computer manufacturers.
1998: The U.S. Department of Justice files two antitrust cases against Microsoft, alleging the company had violated the Sherman Act.
2000: The company acquires Visio Corporation, its largest acquisition to date.
2001: Microsoft Windows XP is released internationally.
2003: Microsoft launches Windows Server 2003.
Name Age Since Current Position
Gates, William 55 2006 Chairman of the Board
Ballmer, Steven 54 2001 Chief Executive Officer, Director
Klein, Peter 47 2009 Chief Financial Officer
Sinofsky, Steven 44 2009 President - Windows & Windows Live Division
DelBene, Kurt 50 2010 President - Microsoft Office Division
Lees, Andy 45 2010 President - Mobile Communications Business
Mattrick, Don 46 2010 President - Interactive Entertainment Business
Nadella, Satya 43 2011 President - Server and Tools Business
Pramanik, Bhaskar 2011 Chairman, India
Turner, Brian 45 2005 Chief Operating Officer
Smith, Bradford 51 2002 Senior Vice President, General Counsel, Secretary, Chief Compliance Officer
Brummel, Lisa 50 2005 Senior Vice President - Human Resources
Capossela, Chris 2011 Senior Vice President - Consumer Channels & Central Marketing Group
Mundie, Craig 61 2006 Chief Research and Strategy Officer
Gilmartin, Raymond 69 2004 Lead Independent Director
Marquardt, David 61 1981 Director
Noski, Charles 58 2003 Director
Panke, Helmut 64 2003 Director
Dublon, Dina 57 2005 Director
Hastings, Reed 50 2007 Director
Klawe, Maria 59 2009 Director
Address:
1 Microsoft Way
Redmond, Washington 98052-6399
U.S.A.
Primarily in the 1990s, critics contend Microsoft used monopolistic business practices and anti-competitive strategies including refusal to deal and tying, put unreasonable restrictions in the use of its software, and used misrepresentative marketing tactics; both the U.S. Department of Justice and European Commission found the company in violation of antitrust laws. Known for its interviewing process with obscure questions, various studies and ratings were generally favorable to Microsoft's diversity within the company as well as its overall environmental impact with the exception of the electronics portion of the business.
With annual revenues of more than $32 billion, Microsoft Corporation is more than the largest software company in the world: it is a cultural phenomenon. The company's core business is based on developing, manufacturing, and licensing software products, including operating systems, server applications, business and consumer applications, and software development tools, as well as Internet software, technologies, and services. Led by Bill Gates, the world's wealthiest individual and most famous businessman, Microsoft has succeeded in placing at least one of its products on virtually every personal computer in the world, setting industry standards and defining markets in the process.
Microsoft Corporation, incorporated in 1981, is engaged in developing, manufacturing, licensing and supporting a range of software products and services for different types of computing devices. The Company’s software products and services include operating systems for personal computers, servers and intelligent devices; server applications for distributed computing environments; information worker productivity applications; business solutions applications; computing applications; software development tools, and video games. It operates in five segments: Windows & Windows Live Division (Windows Division), Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division. It provides consulting and product and solution support services, and trains and certifies computer system integrators and developers. The Company also designs and sells hardware, including the Xbox 360 gaming and entertainment console and accessories, the Zune digital music and entertainment device and accessories, and Microsoft personal computer (PC) hardware products. In addition, it offers the enterprise client access license (eCAL) suite, which licenses access to Microsoft server software products. In October 2009, Publicis Groupe S.A. acquired Razorfish from Microsoft. Pursuant to the acquisition, Razorfish will be a wholly owned subsidiary of Publicis Groupe and a part of VivaKi, the Publicis Groupe media and digital umbrella encompassing Starcom MediaVest Group, ZenithOptimedia, Denuo, Digitas and VivaKi Nerve Center. In December 2009, the Company acquired Opalis Software Inc.
Windows & Windows Live Division
The Company’s Windows Division is engaged in the development and marketing of the Windows operating system, Windows Live and Internet Explorer. The Company’s products and services in the Windows Division includes Windows 7, including Home Basic, Home Premium, Professional, Ultimate, Enterprise and Starter Edition; Windows Vista, including Home Basic, Home Premium, Ultimate, Business, Enterprise and Starter Edition, and Windows XP Home.
The Company competes with Apple, Google, Yahoo!, Hewlett-Packard, Intel, Mozilla and Opera Software Company.
Server and Tools
The Company’s Server and Tools segment develops and markets server software, software developer tools, services. Server software is integrated server infrastructure and middleware designed to support software applications built on the Windows Server operating system and includes the server platform, database, storage, management and operations, service-oriented architecture platform, and security and identity software. Server and Tools also builds standalone and software development lifecycle tools for software architects, developers, testers and project managers. Server offerings can be run onsite, in a partner-hosted environment, or in a Microsoft-hosted environment. Its cloud-based services comprise an operating system with compute, storage and management capabilities and a relational database, both of which enables customers to run enterprise workloads and Web applications in the cloud, as well as a platform that assists developers connect applications and services in the cloud or on premise. Server and Tools offers a range of enterprise consulting and product support services (Enterprise Services) that assists customers in developing, deploying and managing Microsoft server and desktop solutions. Server and Tools also provides training and certification to developers and information technology professionals for its Server and Tools, Microsoft Business Division, and Windows & Windows Live Division products and services. The Company’s products in this segment include Windows Server operating system; Windows Azure; Microsoft SQL Server; SQL Azure; Visual Studio; Silverlight; System Center products; Biz Talk Server; Microsoft Consulting Services; Premier product support services, and other products and services.
The Company competes with Hewlett-Packard, IBM, Oracle, Novell, Red Hat, CA Technologies, BMC, VMWare, McAfee, Symantec, Trend Micro, Sybase, Adobe, Borland, Google, SAP and Salesforce.com.
Online Services Division
The Company’s Online Services Division (OSD) consists of online information offerings, such as Bing, MSN portals and channels, as well as an online advertising platform with offerings for both publishers and advertisers. The Company earns revenue primarily from online advertising, including search, display, and advertiser and publisher tools. During the fiscal year ended June 30, 2010 (fiscal 2010), it launched new releases of Bing, MSN and Advertising Platforms. Its products and services in this segment include Bing; Microsoft adCenter; MSN, and Atlas online tools for advertisers and publishers.
The Company competes with Google and Yahoo!.
Microsoft Business Division
Its Microsoft Business Division (MBD) offerings consist of the Microsoft Office system and Microsoft Dynamics business solutions. Microsoft Dynamics products provide business solutions for financial management, customer relationship management (CRM), supply chain management and analytics applications for small and mid-size businesses, large organizations, and divisions of global enterprises. Approximately 80% of MBD revenue is generated from sales to businesses, which includes Microsoft Office system revenue generated, through volume licensing agreements and Microsoft Dynamics revenue. Revenue from this category generally depends upon the number of information workers in a licensed enterprise and is therefore relatively independent of the number of PCs sold in a given year. Approximately 20% of MBD revenue is derived from sales to consumers, which includes revenue from retail packaged product sales and other equipment manufacturer’s (OEM) revenue. The products and services in this segment include Microsoft Office; Microsoft SharePoint, and Microsoft Dynamics ERP and CRM, as well as Microsoft Office Web Applications.
The Company competes with Adobe, Apple, Corel, Google, IBM, Novell, Oracle, Red Hat, Zoho, Infor, Sage, SAP, Salesforce.com, Autonomy, Cisco and Endeca.
Entertainment and Devices Division
The Entertainment and Devices Division (EDD) is responsible for developing, producing, and marketing the Xbox 360 platform, including the Xbox 360 gaming and entertainment console and accessories, third-party games, games published under the Microsoft brand, and Xbox LIVE services, as well as research, sales, and support of those products and services; PC software games; online games and services; Mediaroom (its Internet protocol television software); Windows Phone and Windows Embedded device platforms; the Zune digital music and entertainment platform; application software for Apple’s Macintosh computers, Microsoft PC hardware products and other devices. EDD is also responsible for all retail sales and marketing for retail packaged versions of the Microsoft Office system and the Windows operating systems. The products of the Company in this segment include Xbox 360 console and games; Xbox LIVE; Windows Phone; Windows Embedded device operating system; Zune; Mediaroom, and a number of consumer software and hardware products (such as Mac Office, mice and keyboards), and Windows Automotive.
The Company competes with Nintendo, Sony, Apple, Google, Nokia, Openwave Systems, Palm, QUALCOMM, Research In Motion, Symbian, IBM, Intel, Metrowerks and MontaVista Software.
In 2000 Microsoft acquired Visio Corporation, the top supplier of business diagramming and technical drawing software. The transaction, at approximately $1.3 billion, became the largest acquisition in Microsoft history. Also in 2000, Microsoft invested $135 million in the software publisher Corel. Apparently, Corel negotiated the investment, offering to drop "certain legal actions" it had against the company, even as it had no legal claims filed against Microsoft. Another transaction--in Microsoft's desire to expand into the television market--involved a $56 million investment in Intertainer Inc, a provider of video-on-demand service. In the same year, Microsoft increased its employee base by nearly 9,000, from 39,170 to 48,030. The total expenditures took a temporary toll on Microsoft's net income, which dropped 22 percent, to $7.35 billion, in 2001. At the same time, net revenue continued to increase, up 10 percent from 2000.
The release of Windows 2000, while causing a stir, was overshadowed by the highly anticipated debut and worldwide release of Microsoft Windows XP. So confident was Microsoft in the product, and in its ability to boost worldwide sales of computers (which had declined 11.3 percent since the September 11 attacks just a month before), they launched a $250 million ad campaign for the product. The software did not represent a brand new development, as much of the technology came from that of its predecessor, Windows 2000. But as Paul Thurrott, writer for Network Windows magazine, wrote, "There's no doubt that we'll eventually look back on Windows XP as one of the key OS releases of all time."
Meanwhile, the Department of Justice ruled that they would not enforce a breakup of Microsoft. By the end of 2002, the U.S. District Court approved the settlement Microsoft reached with the Justice Department. The settlement included preventing Microsoft from benefiting from exclusive deals that could hinder competition; uniform contract terms for computer manufacturers; the required ability of customers to remove icons from certain Microsoft features; and a requirement that Microsoft release specific innovational technical information to its rivals, in order to enforce competition.
Microsoft's net revenue increased to $28.37 billion in 2002, while net income rebounded, gaining 6 percent from the previous year. In 2003, Microsoft saw an impressive 28 percent jump in net income, to reach just below $10 billion. The launching of Windows Server 2003, the largest software development project in the company's history to date, contributed to the growth. According to Microsoft, Windows Server 2003 would be a more reliable, more manageable, and more collaborative piece of software. Security would also be tighter, especially due to a newly built IIS (Internet Information Server) Web Server.
By 2004, with more than 56,000 employees and anticipated year-end revenues of up to $38 billion, Microsoft continued to hold a strong lead in the computer software industry. With an emphasis on continuous innovation--including such business products as the BizTalk Server 2004--further success seemed ensured. Still, resentment toward Microsoft was omnipresent. In April 2004, the company was fined by the European Union for abusing its monopoly on computer operating systems. The fine, at EUR 497 million ($596 million), was not likely to be the last for Microsoft.
Principal Subsidiaries: Microsoft Asia, Ltd. (Nevada); Microsoft Business Solutions Aps (Denmark); Microsoft Capital Group, L.P.; Microsoft E-Holdings, Inc.; Microsoft Finance Company Ltd. (Ireland); Microsoft Ireland Capital Ltd.; Microsoft Ireland Operations Ltd.; Microsoft Licensing, Inc.; Microsoft Manufacturing BV (Netherlands); Microsoft T-Holdings, Inc.; MSLI, GP; Round Island, LLC; Round Island One Ltd.
Principal Divisions: Client; Server & Tools; Information Worker; Business Solutions; MSN; Mobile and Embedded Devices; Home and Entertainment; Other.
Principal Competitors: Apple Computer, Inc.; Hewlett-Packard Company; International Business Machines Corporation; Logitech International SA; Novell, Inc.; Sony Corporation; Sun Microsystems, Inc.; Time Warner Inc.; Yahoo! Inc.
OVERALL
Beta: 1.05
Market Cap (Mil.): $216,469.09
Shares Outstanding (Mil.): 8,432.77
Annual Dividend: 0.64
Yield (%): 2.49
FINANCIALS
MSFT.O Industry Sector
P/E (TTM): 10.17 20.66 19.91
EPS (TTM): 30.44 -- --
ROI: 32.49 9.86 15.90
ROE: 43.96 12.83 17.49
Statistics:
Public Company
Incorporated: 1981 as Microsoft, Inc.
Employees: 56,104
Sales: $32.19 billion (2003)
Stock Exchanges: NASDAQ
Ticker Symbol: MSFT
NAIC: 511210 Software Publishers; 511130 Book Publishers; 334111 Electronic Computer Manufacturing; 334119 Other Computer Peripheral Equipment Manufacturing; 423990 All Other Durable Goods Merchant Wholesalers; 443120 Computer and Software Stores; 551112 Offices of Other Holding Companies; 541613 Marketing Consulting Services; 541618 Other Management Consulting Services
Key Dates:
1975: Microsoft is founded by Bill Gates and Paul Allen; they sell BASIC, the first PC computer language program to MITS Computer, Microsoft's first customer.
1981: Microsoft, Inc. is incorporated; IBM uses Microsoft's 16-bit operating system for its first personal computer.
1982: Microsoft, U.K., Ltd. is incorporated.
1983: Paul Allen resigns as executive vice-president but remains on the board; Jon Shirley is made president of Microsoft (he later becomes CEO); Microsoft introduces the Microsoft Mouse and Word for MS-DOS 1.00.
1985: Microsoft and IBM forge a joint development agreement.
1986: Microsoft stock goes public at $21 per share.
1987: The company's first CD-ROM application, Microsoft Bookshelf, is released.
1990: Jon Shirley retires as president and CEO; Michael R. Hallman is promoted in Shirley's place; the company becomes the first PC software firm to surpass $1 billion of sales in a single year.
1992: Bill Gates is awarded the National Medal of Technology for Technological Achievement.
1993: The company introduces Windows NT.
1995: Bill Gates publishes his first book, The Road Ahead.
1996: The company acquires Vermeer Technologies and its software application, FrontPage.
1997: The Justice Department alleges that Microsoft violated a 1994 consent decree concerning licensing the Windows operating system to computer manufacturers.
1998: The U.S. Department of Justice files two antitrust cases against Microsoft, alleging the company had violated the Sherman Act.
2000: The company acquires Visio Corporation, its largest acquisition to date.
2001: Microsoft Windows XP is released internationally.
2003: Microsoft launches Windows Server 2003.
Name Age Since Current Position
Gates, William 55 2006 Chairman of the Board
Ballmer, Steven 54 2001 Chief Executive Officer, Director
Klein, Peter 47 2009 Chief Financial Officer
Sinofsky, Steven 44 2009 President - Windows & Windows Live Division
DelBene, Kurt 50 2010 President - Microsoft Office Division
Lees, Andy 45 2010 President - Mobile Communications Business
Mattrick, Don 46 2010 President - Interactive Entertainment Business
Nadella, Satya 43 2011 President - Server and Tools Business
Pramanik, Bhaskar 2011 Chairman, India
Turner, Brian 45 2005 Chief Operating Officer
Smith, Bradford 51 2002 Senior Vice President, General Counsel, Secretary, Chief Compliance Officer
Brummel, Lisa 50 2005 Senior Vice President - Human Resources
Capossela, Chris 2011 Senior Vice President - Consumer Channels & Central Marketing Group
Mundie, Craig 61 2006 Chief Research and Strategy Officer
Gilmartin, Raymond 69 2004 Lead Independent Director
Marquardt, David 61 1981 Director
Noski, Charles 58 2003 Director
Panke, Helmut 64 2003 Director
Dublon, Dina 57 2005 Director
Hastings, Reed 50 2007 Director
Klawe, Maria 59 2009 Director
Address:
1 Microsoft Way
Redmond, Washington 98052-6399
U.S.A.