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Never in history has there been a company so innovative and customer focused as Microsoft. Where else can you buy software and have that software supported for years after your purchase - at no cost to you? As much as people love to bash this company, they have revolutionized the way you live, improved the productivity of America and allowed the power of the individual to flourish. We strongly recommend and encourage you to purchase GENUINE Microsoft Products. Starting in 1980, Microsoft formed an important partnership with IBM which allowed them to bundle Microsoft's operating system with computers that they sold, paying Microsoft a royalty for every sale. In 1985, IBM requested that Microsoft write a new operating system for their computers called the OS/2; Microsoft wrote the operating system, but also continued to sell their own version of it, which was in direct competition with the OS/2. The Microsoft version eventually overshadowed the OS/2 in terms of sales. When Microsoft launched several versions of Microsoft Windows in the 1990s, they had captured over 90% market share of the world's personal computers. The company has now become largely successful. As of 2007, Microsoft has a global annual revenue of US$51.12 billion and nearly 79,000 employees in 102 countries. It develops, manufactures, licenses, and supports a wide range of software products for computing devices. Microsoft’s Annual Revenue Reaches $60 Billion Fastest annual revenue growth since 1999 fuels 32% increase in earnings per share. Microsoft Corp. announced revenue of $15.84 billion for the fiscal fourth quarter ended June 30, 2008, an 18% increase over the same period of the prior year. Operating income and diluted earnings per share for the quarter were $5.68 billion and $0.46, representing growth of 42% and 48%, respectively, over the same period of the prior year. For the fiscal year ended June 30, 2008, Microsoft announced revenue of $60.42 billion, an 18% increase over the prior year. Operating income and diluted earnings per share for the year were $22.49 billion and $1.87, representing yearly growth of 21% and 32%, respectively. The growth rates for operating income and diluted earnings per share were impacted by a $1.1 billion charge in the fourth quarter of fiscal year 2007 related to the expansion of the company’s Xbox 360 warranty coverage. This fiscal year marked the launch of Microsoft’s flagship server products: Windows Server 2008, SQL Server 2008 and Visual Studio 2008. Revenue growth was primarily driven by continued customer demand for all products, including Windows Vista, which has sold over 180 million licenses since launch, the 2007 Microsoft Office system, server software, and Xbox 360 consoles and games. Business Outlook Microsoft management offers the following guidance for the quarter ending September 30, 2008: • Revenue is expected to be in the range of $14.7 billion to $14.9 billion. • Operating income is expected to be in the range of $5.9 billion to $6.0 billion. • Diluted earnings per share are expected to be $0.47 or $0.48. Management offers the following guidance for the full fiscal year ending June 30, 2009: • Revenue is expected to be in the range of $67.3 billion to $68.1 billion. • Operating income is expected to be in the range of $26.3 billion to $26.9 billion. • Diluted earnings per share are expected to be in the range of $2.12 to $2.18.
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