Microsoft 2010 Annual Report Download - page 3

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At Microsoft, we firmly believe the impact of cloud computing will be as big as – or bigger than – the previous waves
of technology change. The opportunities cloud computing will create for our customers, our partners and our
company will be immense.
When it comes to the cloud, “we’re all in.”
Delivering New Advances Across Our Product Portfolio
Fiscal 2010 was one of the strongest years in company history for the range and quality of the product advances that
we delivered.
At the top of the list is Windows® 7. Faster, simpler, and easier to use, it enables people to work the way they want to
and more easily than ever before. Windows 7 has already sold 175 million copies, making it the fastest-selling
operating system in history. Fiscal 2010 also saw updates of many of our Windows Live cloud services, which are
redefining how people socialize, communicate and share experiences.
Late in fiscal 2010, we released Office 2010 with Office Web Apps. This newest version of our world-leading
productivity software provides a unified experience that enables people to connect to their work and each other
across the PC, phone and browser so they can get things done from almost anywhere. Even before its official launch
date, Office 2010 had been downloaded by more than 9 million beta customers.
In our Server & Tools Business, Windows Server®, SQL Server™ and Visual Studio® product advances all help IT
professionals save time, reduce costs and build dynamic and efficient data centers.
In our Online Services Division, we delivered several innovation advances in Bing™ throughout the year. Bing gained
over 4 points of share during the year and feedback from customers and industry analysts has been positive. We are
well along the way on the Yahoo/Bing search integration we announced last July and expect the U.S. integration to
be completed this fiscal year.
Along with these releases, in fiscal 2010 we laid the groundwork for several products that will continue to deliver
innovation over the next year. This holiday season we’ll roll out Kinect™ for Xbox 360®, a new experience that
incorporates video and audio sensors to empower people to use gestures and voice commands to play games and
enjoy other kinds of TV entertainment – all without the need for a controller.
We’ll also launch Windows® Phone 7, a completely new interface for phones that focuses on simplicity and a smart
design that brings together the Web, apps and services into an integrated experience. This year, we’ll deliver the
latest version of our browsing technology, Internet Explorer® 9, which is already winning rave reviews for its speed
and performance.
These products join a comprehensive portfolio of products that improve people’s lives and help businesses succeed.
Record Financial Performance
Our combination of focus, discipline and commitment in fiscal 2010 enabled us to achieve record financial results.
For the year, revenue reached a record of $62.5 billion, an increase of 7 percent compared with the previous fiscal
year. Operating income grew by 18 percent to $24.1 billion. Diluted earnings per share jumped 30 percent to $2.10
and we returned almost $16 billion to shareholders through stock buybacks and dividends.
These outstanding results reflect the strong product momentum across the entire company, and we achieved double-
digit growth in every business segment during the fourth quarter of fiscal 2010. In addition, we grew operating income
more quickly than overall revenue during each quarter of fiscal 2010, which shows that Microsoft has maintained a
tight focus on controlling expenses.
More than 35 years ago, Microsoft helped launch the first great wave of information technology transformation by
creating the software that made the PC revolution possible. Today, with your support and our industry-leading cloud
solutions, exciting product portfolio and strong financial performance, we’re playing a key role in delivering the tools
and technologies that are making information technology more powerful, more useful, more affordable and more
accessible.
We’re thrilled and humbled to be a part of this process and we look forward to seeing the transformation that results.
Thank you.
Steven A. Ballmer
Chief Executive Officer September 3, 2010