The BusinessWeek 50 Ranking
42
Microsoft
Sure, Microsoft is maturing and can't match the eye-popping growth numbers of its youth. Its revenue for the fiscal year that ends in June is expected to grow in just the single digits. That's mostly because Microsoft still gets the lion's share of sales from its Windows and Office monopolies, and they are dependent on the cooling PC business. Moreover, the Redmond (Wash.) software giant has had limited success in its efforts to find fresh fountains of revenue growth by expanding into new markets Profile: everything from video games to software for running small businesses. For all of those challenges, Microsoft still manages to post impressive profit growth. The company pumped profits up 28% in the most recent 12 months. And it's not just the monopolies that are kicking off that high-margin money. Ballmer has redoubled efforts to squeeze costs, from employee perks to business travel. New stock-based compensation, replacing the old stock-option grants, also pared expenses.
Company Info
| 2004 Rank | 77 |
| STOCK INFO | MSFT |
| Market Value | $273.7 BILLION |
| Total Return | (1-yr.) 6.4%
(3-yr.) -2.3% |
| 2004 sales | $38.5 BILLION |
| Sales Growth | (1-yr.) 12%
(3-yr.) 12.6% |
| Net income | $10 BILLION |
| Net Income Growth | (1-yr.) 28%
(3-yr.) 15.5% |
| Net Margin* | 26.0% |
| Return on Equity* | 21.2% |
| Industry | SOFTWARE & SERVICES |
| CORPORATE WEB SITE | |
More in S&P 500 Companies Scoreboard >
*Trailing 12 months
Company data as of 2/28/05 provided by Standard & Poor's Compustat
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Inside Microsoft's Consumer Strategy
A Fountain of Youth for Microsoft
Microsoft's Midlife Crisis
Company Snapshot
Microsoft Corporation engages in the development, manufacture, licensing, and support of a range of software products for various computing devices. Its software products include operating systems for servers, personal computers (PC), and intelligent devices; server applications for distributed computing environments; information worker productivity applications; business solutions applications; and software development tools. The company also provides consulting and product support services; and trains and certifies system integrators and developers. It sells the Xbox video game console and games, and PC games and peripherals. The company’s online businesses include the MSN subscription and the MSN network of Internet products and services. Microsoft also researches and develops advanced technologies. Microsoft also offers music download service in 19 market versions in 17 countries, including 13 western European countries. The company has strategic alliances with Dell, Inc.; KT Corp.; Langchao Group; and MTV Networks, Inc. Microsoft was founded in 1975 by William H. Gates III. The company is headquartered in Redmond, Washington.
No. of Employees
57,000
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