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Microsoft Form 10-K: FY2003

Microsoft’s fiscal year 2003 performance reflects a strategic pivot toward organizational restructuring and long-term technological investment amidst a complex landscape of legal and competitive pressures.

• As of August 15, 2003, Microsoft held a market capitalization of approximately $235.4 billion with 10.8 billion shares of common stock outstanding.
• Client operating profit for fiscal 2003 grew 11% year-over-year, driven by a corresponding 11% increase in revenue despite a 5% decline in reported OEM unit shipments.
• Microsoft transitioned its OEM licensing model in fiscal 2003 to bill based on the acquisition of Certificates of Authenticity (COAs) rather than actual PC shipments to end customers.

Microsoft Form 10-Q: Q3 FY2003

Microsoft demonstrated robust financial health during the third quarter of fiscal year 2003, reporting quarterly revenue of $7.84 billion and a consolidated nine-month revenue total of $24.12 billion.

Microsoft Form 10-Q: Q2 Fiscal Year 2003

Microsoft achieved robust financial performance during the second quarter of fiscal year 2003, characterized by a 10 percent increase in quarterly revenue and a rise in net income to $2.55 billion.

• As of December 31, 2002, Microsoft reorganized its operations into seven new segments: Client, Server Platforms, Information Worker, Business Solutions, MSN, CE/Mobility, and Home and Entertainment.
• Microsoft reached a final judgment in its antitrust litigation on November 1, 2002, which largely mirrored its previous settlement with the DOJ and nine states, though Massachusetts and West Virginia appealed the decision.
• On January 21, 2003, a court granted Sun Microsystems a preliminary injunction requiring Microsoft to distribute specific Sun Java software with Windows XP and prohibiting certain distributions of Microsoft's own Java version.

Microsoft Form 10-Q: Q1 FY2003

Microsoft achieved robust financial performance during the first quarter of fiscal year 2003, reporting revenue of $7.75 billion and net income of $2.73 billion.

• Microsoft reported total revenue of $7.75 billion for the quarter ended September 30, 2002, representing a 26% increase over the same period in the prior year.
• The Home and Entertainment segment revenue grew to $505 million, driven primarily by the launch of the Xbox video game system and related game sales, compared to $236 million in the prior year quarter.
• Consolidated operating income rose to $4.05 billion for the quarter, up from $2.89 billion in the same period of 2001.