The mysterious shroud surrounding Microsoft"s revenues was dispelled yesterday, when the company revealed that it is losing shedloads of money on everything bar client Windows, server and Office software. In these, naturally, it"s making even bigger shedloads, but it"s abundantly clear who"s paying the rent, and financing the assaults into new areas.
Watch as this poster descends into business-speak... "focusing on core values", "value added activities", "leverage existing synergies" aaarrrgghhh :(
The breakdown of financials by division was published for the first time in Microsoft"s Form-10Q filing to the Securities & Exchange Commission, presumably as a side-effect of corporate America"s attempt at a post-Enron clean-up. For the period ended September 30th, the two cash cows of Client (i.e. Windows) and Information Worker (Office) produced operating income of $2.48 billion on revenue of $2.89 billion, and $1.88 billion on $2.38 billion respectively.
Server Platforms performed modestly by these standards, but spectacularly by most other people"s, chalking up an operating income of $519 million on revenue of $1.52 billion, but beyond that we have the basket cases.
MSN lost $97 million on $531 million, CE/Mobility was out $33 million on $17 million revenues (always a good trick, this kind of stuff), and the home of Xbox, Home Entertainment, dropped $177 million on revenues of $505 million. Business Solutions, which includes Navision and Great Plains, and is a sector Microsoft hopes will contribute great things in the future, lost $68 million on $107 million.
* Moolah: money, cash, wonga, greenbacks etc.