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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Joseph G. who wrote (9763)	11/29/1997 1:05:00 PM
From: Joseph G.	Respond to of 18056

MSFT 10Q: Alternative Presentation of Accounting for Stock Options (In millions, except earnings per share)(Unaudited) ---------------------------------------------------------------------- Twelve Months Ended Three Months Ended Sept. 30, 1997 Sept. 30, 1997 --------------------------------------------------------------------------------------------- Reported Proforma Reported Proforma - --------------------------------------------------------------------------------------------- <S> <C> <C> <C> <C> Revenue $12,193 $12,193 $3,130 $ 3,130 Operating expenses: Cost of revenue 1,088 1,132 253 293 Research and development 2,060 2,729 567 1,137 Acquired in-process technology 296 296 296 296 Sales and marketing 3,019 3,472 788 1,192 General and administrative 371 523 95 210 - --------------------------------------------------------------------------------------------- Total operating expenses 6,834 8,152 1,999 3,128 - --------------------------------------------------------------------------------------------- Operating income 5,359 4,041 1,131 2 Interest income 493 493 142 142 Other expenses (281) (281) (71) (71) - --------------------------------------------------------------------------------------------- Income before income taxes 5,571 4,253 1,202 73 Provision for income taxes 2,068 1,596 539 133 - --------------------------------------------------------------------------------------------- Net income 3,503 2,657 663 (60) Preferred stock dividends 22 22 7 7 - --------------------------------------------------------------------------------------------- Net income available for common shareholders $ 3,481 $ 2,635 $ 656 ($ 67) ============================================================================================= Earnings per share $ 2.65 $ 2.05 $ 0.50 ($ 0.05) ============================================================================================= Weighted average shares outstanding 1,322 1,298 1,333 1,305 ============================================================================================= Options granted 34 34 28 28 ======================================================================================== And, "other income" includes over $200 mil in put sales! No liability for puts sold is recorded, since MSFT stock can never tank ...