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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.
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