Microsoft History

(Part 2)


(In millions, except per share amounts)
Year Ended June 302007 2006 2005

Revenue$51,122 $44,282 $39,788
Operating expenses:
Cost of revenue10,693 7,650 6,031
Research and development7,121 6,584 6,097
Sales and marketing11,455 9,818 8,563
General and administrative3,329 3,758 4,536
Total operating expenses32,598 27,810 25,227
Operating income18,524 16,472 14,561
Investment income and other1,577 1,790 2,067
Income before income taxes20,101 18,262 16,628
Provision for income taxes6,036 5,663 4,374
Net income$14,065 $12,599 $12,254

Earnings per share:
Basic$001.44 $001.21 $001.13
Diluted$001.42 $001.20 $001.12

Weighted average shares outstanding:
Basic9,742 10,438 10,839
Diluted9,886 10,531 10,906

Cash dividends declared per common share$000.40 $000.35 $003.40

Attached is an Income Statement from 2005 to 2007 (Microsoft Corporation Annual Report, 2008). As you can see, revenues and net income have continued to increase over the years. Earnings per share have increased as

well. This shows that Microsoft is in a good financial standing. This means they are able to pay their shareholders and increase what they are paying them each year and they do not need to borrow any additional funds because they have large amounts of liquid assets on hand.




Microsoft offers benefits in the following areas:
•Savings Plus 401(k)
•Employee Stock Purchase Plan
•Discounted Financial Services

Health Benefits
•Preferred Plus Plan
•Health Savings Plan
•Vision Care
•Dental Plan
•Life Insurance

Family and Parenting Benefits
•Paid Maternity & Parental Leave
•Adoption Assistance
•Child Care Discounts
(Microsoft Careers-Benefits, 2008)
Microsoft offers many benefits in their package. The health benefits are a very important part of this package because it encompasses everything I would need for myself and later down the road, my family. The investment options are just as good. Offering a 401k and an employee stock purchase plan is crucial for saving and investing for the future.




Microsoft has an innovative corporate culture and a strong product development focus that is designed to keep them on the leading edge of the

industry. They believe that their employees are the company’s most important asset (Human Resources, 2008). They are the source of their creative ingenuity and success. They empower each staff member to take initiative in solving problems, coming up with new ideas and improving the organization.


I contacted a marketing manager at Microsoft named Chris. When I asked him about the people he worked around and with he said, “Microsoft is filled with the smartest people I’ve ever met. It’s amazing to come to work and collectively learn and collaborate and achieve success with this group of incredible people who care so much about making a difference.”

After researching Microsoft, I believe that Microsoft would be a great company to work for. They employ the smartest and brightest people from all over the world. They are the industry leaders in many aspects including product development and continuing education. They offer a great deal of benefits from medical to dry cleaning delivery at work. Microsoft is definitely a company I would work for and after I graduate I plan on sending my resume to them.




Microsoft Careers-United States (n.d.) Retrieved June 09, 2008 from

Microsoft Company Website (n.d) Retrieved June 09, 2008 from