On Tuesday, Microsoft (MSFT) held their Annual Shareholders Meeting with investors in Washington; here are some of the highlights from the event:
A review of the business results: Last year’s revenue increased 12% to nearly $70 billion; operating income outpaced sales (13% growth) and was more than $27 billion for the year. This strength has been continued in the first quarter of 2012, which produced double-digit EPS growth.
Nearly $17 billion was returned to shareholders through stock buybacks (two-thirds) and dividends (remaining one-third); in addition, the company recently announced an increase to the dividend of 25% (cumulatively up over 50% in the past two years). Over the last 10 years, Microsoft has distributed over 170 billion back to shareholders.
Since the launch of Windows 7 and Office 2010 two years ago, the company has licensed more than 450 million new Windows 7 PCs and 100 million new Office licenses, the fastest-selling versions in history in their respective product categories; as noted by CEO Steve Ballmer, “I wish I could tell you there was no piracy in addition to that, but there has been quite a bit, so those products are really quite, quite popular.”
In Server & Tools, Microsoft recently previewed Windows Server Version 8, which will be cloud optimized to support private cloud and hybrid cloud scenarios in addition to the public cloud scenarios; by their estimation, the early response has been “incredibly enthusiastic.” Here’s what ComputerWorld contributor Jonathan Hassell had to say in a recent article:
“Every once in a while, you get a glimpse of something in the tech world that takes your breath away. For consumers, the iPad's eye candy and extreme usability, for instance, have the power to change the way they relate to computers. For enterprise administrators, data center managers and system managers, the features and improvements in Windows Server 8 are right up there in significance. It's really a game-changer in the world of server operating systems.”
Steve Ballmer put it this way: “It's these IT innovations that don't necessarily impact all of us in our personal lives, but they form a foundation upon which our company does an incredibly important business. The strength of that server offering has enabled our Server and Tools business to grow from literally nothing in the early 1990s to a $17-billion business this past year. And it's fueled double-digit growth for the past six quarters in that business.”
As I noted in my recent article on Xbox, Microsoft sees this device as much more than a video game console — it’s becoming “a real entertainment hub for the living room.” This is coming to fruition (at least partly) via Kinect, which was named the fastest-selling consumer electronics device in history by the Guinness Book of World Records earlier this year. As a result of innovations such as Kinect, the Entertainment & Devices division increased revenues 45% to almost $9 billion in fiscal 2011.
Also on the horizon is Windows 8, which released in a developers preview back in September; in Mr. Ballmer’s words, “We've truly re-imagined Windows and Windows 8 and we can't wait for the opportunity to share more with you over the coming months.”
In voting, nine directors were elected with more than 92% of all votes cast to serve until the next annual shareholder meeting; the list includes Steve Ballmer, Dina Dublon, Bill Gates, Raymond V. Gilmartin, Reed Hastings, Dr. Maria Klawe, David F. Marquardt, Charles H. Noski, Dr. Helmut Panke.
The only Shareholder Proposal, which was put forward by Harrington Investments to establish a Board Committee on Environmental Sustainability, received less than 4% of the votes and was not approved.
The link to the transcript can be found here.
A review of the business results: Last year’s revenue increased 12% to nearly $70 billion; operating income outpaced sales (13% growth) and was more than $27 billion for the year. This strength has been continued in the first quarter of 2012, which produced double-digit EPS growth.
Nearly $17 billion was returned to shareholders through stock buybacks (two-thirds) and dividends (remaining one-third); in addition, the company recently announced an increase to the dividend of 25% (cumulatively up over 50% in the past two years). Over the last 10 years, Microsoft has distributed over 170 billion back to shareholders.
Since the launch of Windows 7 and Office 2010 two years ago, the company has licensed more than 450 million new Windows 7 PCs and 100 million new Office licenses, the fastest-selling versions in history in their respective product categories; as noted by CEO Steve Ballmer, “I wish I could tell you there was no piracy in addition to that, but there has been quite a bit, so those products are really quite, quite popular.”
In Server & Tools, Microsoft recently previewed Windows Server Version 8, which will be cloud optimized to support private cloud and hybrid cloud scenarios in addition to the public cloud scenarios; by their estimation, the early response has been “incredibly enthusiastic.” Here’s what ComputerWorld contributor Jonathan Hassell had to say in a recent article:
“Every once in a while, you get a glimpse of something in the tech world that takes your breath away. For consumers, the iPad's eye candy and extreme usability, for instance, have the power to change the way they relate to computers. For enterprise administrators, data center managers and system managers, the features and improvements in Windows Server 8 are right up there in significance. It's really a game-changer in the world of server operating systems.”
Steve Ballmer put it this way: “It's these IT innovations that don't necessarily impact all of us in our personal lives, but they form a foundation upon which our company does an incredibly important business. The strength of that server offering has enabled our Server and Tools business to grow from literally nothing in the early 1990s to a $17-billion business this past year. And it's fueled double-digit growth for the past six quarters in that business.”
As I noted in my recent article on Xbox, Microsoft sees this device as much more than a video game console — it’s becoming “a real entertainment hub for the living room.” This is coming to fruition (at least partly) via Kinect, which was named the fastest-selling consumer electronics device in history by the Guinness Book of World Records earlier this year. As a result of innovations such as Kinect, the Entertainment & Devices division increased revenues 45% to almost $9 billion in fiscal 2011.
Also on the horizon is Windows 8, which released in a developers preview back in September; in Mr. Ballmer’s words, “We've truly re-imagined Windows and Windows 8 and we can't wait for the opportunity to share more with you over the coming months.”
In voting, nine directors were elected with more than 92% of all votes cast to serve until the next annual shareholder meeting; the list includes Steve Ballmer, Dina Dublon, Bill Gates, Raymond V. Gilmartin, Reed Hastings, Dr. Maria Klawe, David F. Marquardt, Charles H. Noski, Dr. Helmut Panke.
The only Shareholder Proposal, which was put forward by Harrington Investments to establish a Board Committee on Environmental Sustainability, received less than 4% of the votes and was not approved.
The link to the transcript can be found here.
