Microsoft Announces Fiscal Year 2006 3rd Quarter Financial Results

Today, Microsoft announced its third quarter earnings. Revenue of $10.9 billion was up 13% over results in the same period of the prior year. . Operating income for the third quarter included $397 million, compared with $768 million in the prior-year period, for certain legal charges. Operating income is expected to be in the range of $4.0 billion to $4.2 billion for FY 06 and in the range of $18.7 billion to $19.3 billion for FY07.

Revenue growth continued to accelerate throughout the fiscal year, and this quarter it was fueled by strong demand for our new consumer and business offerings. Server and Tools had yet another outstanding performance driven by SQL Server revenue growth in excess of 30%. Home and Entertainment grew 85% as Xbox sales more than doubled. MED and MBS grew 46% and 21%, respectively, on robust demand for our Windows Mobile and Microsoft Dynamics product lines.

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