(in millions, except earnings per share)   year ended june 30 1995 1996 1997 Revenue $5,937 $8,671 $11,358 Operating expenses: Cost of revenue 877 1,188 1,085 Research and development 860 1,432 1,925 Sales and marketing 1,895 2,657 2,856 General and administrative 267 316 362      Total operating expenses 3,899 5,593 6,228 Operating income 2,038 3,078 5,130 Interest income 191 320 443 Other expenses (62) (19) (259) Income before income taxes 2,167 3,379 5,314 Provision for income taxes 714 1,184 1,860 Net income 1,453 2,195 3,454 Preferred stock dividends - - 15 Net income available   for common shareholders $1,453 $2,195 $3,439 Earnings per share 1 $  1.16 $  1.71 $  2.63 Weighted average   shares outstanding 1 1,254 1,281 1,312   see accompanying notes Revenue Earnings per share 1       1 share and per share amounts have been restated to reflect a two-for-one stock split in December 1996 View Microsoft income statements presented in these local languages, currencies, and accounting conventions: Australian Canadian Français Deutsch United Kingdom

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