Redmond, Washington--July 17, 1995--Microsoft Corporation today announced revenues of $5.94 billion for the fiscal year 1995, a 28% increase over the $4.65 billion reported last year. Net income totaled $1.45 billion, and earnings per share were $2.32.

Revenues for the quarter ended June 30, 1995 were $1.62 billion, a 25% increase over the comparable quarter in fiscal 1994. For the quarter, net income was $368 million, and earnings per share were $0.58.

Excluding the one-time charges described below, net income for the fiscal year was $1.48 billion, an increase of 23% from the $1.20 billion recorded in fiscal 1994, and earnings per share were $2.37 compared to $1.98 in fiscal 1994, a gain of 20%. Excluding the one-time charges, quarterly net income was $397 million compared to $342 million in the same quarter in the prior year, and earnings per share were $0.63 compared with $0.56 in the comparable quarter.

In the fourth quarter this year, Microsoft incurred a $.05 per share charge in connection with the termination of its planned merger with Intuit Inc. which was due to delays imposed by the Department of Justice. In the fourth quarter of fiscal 1994, the company recorded a credit of $.03 per share related to the settlement of patent litigation with Stac Electronics. In the third quarter of fiscal 1994, the company had previously incurred a charge of $.13 per share related to this patent litigation.

"This has been a strong finishing quarter in another good year for Microsoft," observed Bob Herbold, chief operating officer. "As has been true for the last several quarters, growth was paced by record results in the OEM and Far East channels. Our largest products families, Microsoft® Windows® and Office, continued to perform very well despite the upgrades scheduled for each in the coming quarter."

"While this was our 20th consecutive year of growth in revenues and profits, research and development and other operating expenses grew faster than revenues," noted Mike Brown, chief financial officer. "To maintain competitiveness, we expect this investment trend to continue in the coming fiscal year."

During the quarter, the company announced the availability of the Windows NT(TM) Workstation and Windows NT Server operating systems version 3.51, which give customers unprecedented hardware flexibility by providing the same feature and API set across four hardware platforms: Intel®, Alpha AXP(TM), PowerPC(TM), and MIPS®. In addition, Microsoft shipped SQL Server(TM) 6.0, a distributed client/server database management system that supports replication, centralizes control of distributed servers, and improves scalability and performance.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

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Microsoft and Windows are registered trademarks and Windows NT is a trademark of Microsoft Corporation.
Alpha AXP is a trademark of Digital Equipment Corp.
Intel is a registered trademark of Intel Corp.
PowerPC is a trademark of International Business Machines Corp.
MIPS is a registered trademark of MIPS Computer Systems Inc.

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