Exhibit 99.1

Microsoft Reports Record Fourth-Quarter and Full-Year Revenue

Enterprise demand fuels continued Microsoft growth with significant product launches ahead.

REDMOND, Wash. – July 19, 2012 –

Microsoft Corp. today announced quarterly revenue of $18.06 billion for the quarter ended June 30, 2012. Operating income and loss per share for the quarter were $192 million and $0.06 per share.

The financial results reflect the previously announced non-cash, non-tax-deductible income statement charge of $6.19 billion for the impairment of goodwill and the deferral of $540 million of revenue related to the Windows Upgrade Offer. Adjusting for these items, non-GAAP fourth quarter revenue, operating income, and earnings per share were $18.60 billion, $6.93 billion, and $0.73 per share, which represented increases of 7%, 12%, and 6%, respectively, over the prior year period.

 

Three Months Ended June 30,

 
($ in millions, except per share amounts)                                                
     2011
As Reported
(GAAP)
     2012
As Reported
(GAAP)
     Goodwill
Impairment
     Deferred
Revenue
     2012
As Adjusted
(Non-GAAP)
     % Y/Y
(GAAP)
    % Y/Y
(Non-GAAP)
 

Revenue

   $ 17,367        $ 18,059          $ 540       $ 18,599         4     7

Operating Income

   $ 6,171        $ 192       $ 6,193       $ 540       $ 6,925         -97     12

EPS

   $ 0.69       -$ 0.06       $ 0.73       $ 0.06       $ 0.73         *        6

 

* Not meaningful

“We delivered record fourth quarter and annual revenue, and we’re fast approaching the most exciting launch season in Microsoft history,” said Steve Ballmer, chief executive officer of Microsoft. “Over the coming year, we’ll release the next versions of Windows, Office, Windows Server, Windows Phone, and many other products and services that will drive our business forward and provide unprecedented opportunity to our customers and partners.”

“The combination of solid revenue growth and rigorous cost discipline drove double-digit operating income growth for the quarter, adjusting for the goodwill impairment and deferred revenue,” said Peter Klein, chief financial officer of Microsoft. “We are focusing our resources in strategic areas that will deliver shareholder value and long-term growth opportunities.”

For Microsoft’s fiscal year 2012, the company’s revenue, operating income, and earnings per share were $73.72 billion, $21.76 billion, and $2.00 per share. Adjusting for the goodwill impairment charge and deferred revenue, non-GAAP fiscal year 2012 revenue, operating income, and earnings per share were $74.26 billion, $28.50 billion, and $2.78 per share, which represented increases of 6%, 5%, and 5%, respectively, over adjusted non-GAAP fiscal year 2011 figures.

 

Twelve Months Ended June 30,

 
($ in millions, except per share amounts)                                                  
    2011
As Reported
(GAAP)
    2011
Tax
Settlement
    2011
As Adjusted
(Non-GAAP)
    2012
As Reported
(GAAP)
    Goodwill
Impairment
    Deferred
Revenue
    2012
As Adjusted
(Non-GAAP)
    % Y/Y
(GAAP)
    % Y/Y
(Non-GAAP)
 

Revenue

  $ 69,943        $ 69,943      $ 73,723        $ 540      $ 74,263        5     6

Operating Income

  $ 27,161        $ 27,161      $ 21,763      $ 6,193      $ 540      $ 28,496        -20     5

EPS

  $ 2.69      $ 0.05      $ 2.64      $ 2.00      $ 0.73      $ 0.06      $ 2.78        -26     5

 

* Totals do not foot due to rounding

The Server & Tools business revenue grew 13% for the fourth quarter and 12% for the full year. Enterprises are purchasing SQL Server and System Center to support their mission critical workloads and build their business intelligence and private cloud infrastructure. Windows Server 2012 will be available this September.

The Microsoft Business Division revenue grew 7% for the fourth quarter and 7% for the full year reflecting continued momentum in Office 2010 sales. Office is now installed on more than 1 billion PCs around the world. Earlier this week, we announced the customer preview of the new Microsoft Office.


The following information was filed by Microsoft Corp (MSFT) on Thursday, July 19, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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