MSFT Annual Report 2004 - Financial Highlights

FINANCIAL HIGHLIGHTS - U.K. Pound Sterling

(In millions, except earnings per share)

Year Ended June 30	2000 ⁽¹⁾	2001 ^{(1, 2)}	2002 ^{(1, 3)}	2003 ^{(1, 4)}	2004

Revenue	£14,422	£17,307	£19,763	£20,512	£21,338
Operating income	6,914	8,019	5,764	6,083	5,233
Income before accounting change	5,919	5,283	3,731	4,799	4,732
Net income	5,919	5,026	3,731	4,799	4,732
Diluted earnings per share before accounting change	0.53	0.47	0.33	0.44	0.43
Diluted earnings per share	0.53	0.45	0.33	0.44	0.43
Cash dividends per share	-	-	-	0.05	0.09
Cash and short-term investments	15,751	22,356	25,327	29,294	33,412
Total assets	34,214	41,620	45,810	48,814	50,945
Stockholders' equity	27,380	33,455	35,936	38,768	41,260

(1)	The financial data presented for fiscal 2002 and 2003 has been restated as prescribed by SFAS 148, Accounting for Stock-Based Compensation - Transition and Disclosure and amendment of FASB Statement No. 123, to reflect the retroactive adoption of the fair value recognition provisions of SFAS 123, Accounting for Stock-Based Compensation as discussed in Note 13. The information presented for 2000 and 2001 has not been restated. If fiscal 2000 had been restated, the operating income and net income would have been £5,725 million and £5,134 million. If fiscal 2001 had been restated, the operating income and net income would have been £5,708 million and £3,478 million.
(2)	Fiscal 2001 includes an unfavorable cumulative effect of accounting change of £257 million or £0.02 per diluted share, reflecting the adoption of SFAS No. 133. Fiscal 2001 also includes the acquisition of Great Plains Software, Inc. for approximately £$778 million in stock.
(3)	Fiscal 2002 includes a £871 million (pre-tax) gain on the sale of Expedia, Inc.
(4)	Fiscal 2003 includes the acquisition of Navision a/s, Rare Ltd. and Placeware, Inc. for a total of £735 million in cash and £471 million in stock and other consideration.
* Cash and short-term investments, Total assets, and Stockholder's equity are translated using the June 30 exchange rate. All other items have been translated using the average rate for the fiscal year. This Consolidated Financial Highlights table has been converted into British currency. This presentation is intended only to provide additional information. These financial highlights are not a complete presentation of the Company's financial position an d results of operations. A complete set of the Company's primary financial statements prepared in accordance with generally accepted accounting principles in the United States of America, and included in filings with the United States Securities and Exchange Commission, can be found in The Microsoft 2004 Annual Report to Shareholders (including Form 10-K) which is available on this Web site. Copies may also be obtained by writing to the Company.