IT 100 Special Report 2006 >

  THE INFOTECH 100 COMPANIES
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37

Microsoft

(NasdaqNM: MSFT)

USA

It's easy to look at Microsoft and see its challenges, especially after the announcement that Bill Gates would give up his day-to-day role over the next two years. Sales at the Redmond (Wash.) software giant inched ahead in the calendar year just 10%. It's trailing such rivals as Sony, Apple, and Google in new markets where it's seeking growth. And its stock, stuck for the past four years in the mid-20s, has yet to recover from news in April that operating income in the coming year would fall below analyst projections as the company increases investments by over $2 billion to develop new markets. Still, the company's two slow-growing monopolies—Windows and Office—kick off huge profits. And its server software business has grown into a third pillar of its fiscal foundation. That translated to a 32% return on equity, even with a stagnant stock price.

Company Info

2005 Rank

27

Sales*
($ Millions)

42,639.0

Sales Growth
(over prev. year)

10 %

Profits*
($ Millions)

13,471.0

Return on Equity

32.0 %

Total Return on Sales (12-mo.)

-11.1

Share Price
As of 5/31/06

22.65

CURRENT
MARKET INFO

NasdaqNM: MSFT

No. of Employees

61,000

Industry Software
COMPANY WEB SITE >
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Microsoft engages in the development, manufacture, license, and support of software products for various computing devices worldwide. Its client segment offers operating systems for servers, PCs, and intelligent devices. The company's server and tools segment provides server applications and developer tools, as well as training and certification services. Its products provide messaging and collaboration, database management, e-commerce, and mobile information access capabilities. It also offers consulting services. Microsoft's information worker segment offers business and personal productivity software applications including collaboration tools and document management and messaging applications for personal computers. Its Microsoft Business Solutions segment offers software solutions to manage financial, customer relationship, and supply chain management functions. Its products consist of business solutions, customer relationship management software, retail solutions, and related services. The company's MSN segment provides online communication and information services, including e-mail and instant messaging, and online search and premium content. It also provides Internet access, and Web and mobile services. Its mobile and embedded devices segment offers mobile software platform; embedded device software platforms used in consumer electronics devices and enterprise devices; a hosted programmable XML Web service; and software platform to create telematics solutions for vehicles. Microsoft's home and entertainment segment offers the Xbox video game system; PC software games, online games and console games; television platform products for the interactive television industry; and consumer software and hardware products, such as learning products and services, application software for Macintosh computers, and PC peripherals. Microsoft was founded in 1975 by William H. Gates III. The company is headquartered in Redmond, Wash.


Data provided by Capital IQ
 
Steven A. Ballmer

Steven A. Ballmer, 48

Chief Executive Officer and Director

Total Compensation

$1,009,073

Harvard University - Bachelor's Degree, Stanford Graduate School of Business - Other Education

Steve Ballmer has been chief executive officer of Microsoft since January, 2000. Ballmer joined Microsoft in 1980 and was the first business manager hired by Bill Gates. During the past 20 years, Ballmer has headed several Microsoft divisions, including operations, operating systems development, and sales and support. He served as president of Microsoft from July, 1998, until February, 2001, with day-to-day responsibility for running Microsoft. Prior to that, he served as executive vice-president, sales and support, from February, 1992. Ballmer has been a director of Microsoft since January, 2000. Ballmer served as a director of Accenture, a general partner of Accenture SCA, since October, 2001. While in college, Ballmer managed the football team, worked on the Harvard Crimson newspaper as well as the university literary magazine and roomed down the hall from fellow sophomore Gates. After college, he worked for two years at Procter & Gamble as an assistant product manager and, before joining Microsoft, attended Stanford University Graduate School of Business. He graduated from Harvard University with a bachelor's degree in mathematics and economics.



Executive Data provided by Capital IQ