Microsoft Makes More Money

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Microsoft reported its earnings for the quarter ending June 30 yesterday. The results? Gates and Co. posted a net income of $2.2 billion, up from $1.36 billion this time last year. Earnings rose a healthy 62 percent. On Friday, Gates's personal fortune crossed the $100 billion mark, a watershed in the annals of filthy lucre. We curse Microsoft, we mock it, we pirate it, but it keeps on getting bigger. How does Bill do it?

A few more numbers. Revenue rose 39 percent, to $5.76 billion. Microsoft's investments are performing swimmingly as well at $14.4 billion, they're up almost $10 billion from last year, if you count the $5 billion stake the company took in AT&T. Revenues were up 39 percent, to $5.76 billion. The results beat analysts' predictions by four cents a share.

Where's it all coming from? According to Greg Maffei, the company's chief financial officer, who spoke at a press conference, the Office 2000 applications suite (which includes such warhorses as Word and Excel) has done particularly well: Sales of so-called productivity applications in general poured $2.9 billion into Microsoft's coffers, more than half its total income. Maffei also cited sales of Windows, improved sales in Asia (worth $570 million) and better performance from Microsoft's web ventures, such as MSN. Maffei also confirmed that Microsoft was considering creating a "tracking" stock for its Internet properties. MORE >>