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INCOME STATEMENTS |
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| msft | In millions, except earnings per share | ||||||||
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| Year Ended June 30 | 1997 | 1998 | 1999 | ||||||
| Revenue | $11,936 | $15,262 | $19,747 | ||||||
| Operating expenses: | |||||||||
| Cost of revenue | 2,170 | 2,460 | 2,814 | ||||||
| Research and development | 1,863 | 2,601 | 2,970 | ||||||
| Acquired in-process technology | — | 296 | — | ||||||
| Sales and marketing | 2,411 | 2,828 | 3,231 | ||||||
| General and administrative | 362 | 433 | 689 | ||||||
| Other expenses | 259 | 230 | 115 | ||||||
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| Total operating expenses | 7,065 | 8,848 | 9,819 | ||||||
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| Operating income | 4,871 | 6,414 | 9,928 | ||||||
| Investment income | 443 | 703 | 1,803 | ||||||
| Gain on sale of Softimage, Inc. | — | — | 160 | ||||||
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| Income before income taxes | 5,314 | 7,117 | 11,891 | ||||||
| Provision for income taxes | 1,860 | 2,627 | 4,106 | ||||||
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| Net income | $ 3,454 | $ 4,490 | $ 7,785 | ||||||
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| Earnings per share1: | |||||||||
| Basic | $ 0.72 | $ 0.92 | $ 1.54 | ||||||
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| Diluted | $ 0.66 | $ 0.84 | $ 1.42 | ||||||
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| 1 | Earnings per share have been restated to reflect a two-for-one stock split in March 1999. | ||||||||
| See accompanying notes. | |||||||||
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