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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (11283)	1/19/2000 8:58:00 AM
From: Wally Mastroly	Read Replies (1) \| Respond to of 15132

Re: MSFT earnings... REDMOND, Wash., Jan. 18 (Reuters) - First Call/Thomson Financial estimate was $0.42 per share MICROSOFT CORPORATION INCOME STATEMENTS (IN MILLIONS, EXCEPT EARNINGS PER SHARE) Three Months Ended Six Months Ended Dec. 31 Dec. 31 1998 1999 1998 1999 Revenue $5,195 $6,112 $9,388 $11,496 Operating expenses: Cost of revenue 788 756 1,437 1,468 Research and development 715 911 1,366 1,745 Sales and marketing 794 1,027 1,482 1,930 General and administrative 149 506 248 649 Other expenses (income) 35 (6) 59 19 Total operating expenses 2,481 3,194 4,592 5,811 Operating income 2,714 2,918 4,796 5,685 Investment income 337 773 598 1,170 Gains on sales 0 0 160 156 Income before income taxes 3,051 3,691 5,554 7,011 Provision for income taxes 1,068 1,255 1,888 2,384 Net income 1,983 2,436 3,666 4,627 Earnings per share (A): Basic 0.40 0.47 0.73 0.90 Diluted 0.36 0.44 0.67 0.84 (A) Earnings per share for the three and six months ended December 31, 1998 have been restated to reflect a two-for-one stock split in March 1999. - Interesting.... Revenue numbers look great, but total expenses growing faster. Also, investment income becoming a bigger percentage of net income..........