Year Ended June 30
(In millions, except earnings per share)

1992 1993 1994 1995 1996

Net revenues $2,759 $3,753 $4,649 $5,937 $8,671
Net income 708 953 1,146 1,453 2,195
Earnings per share* 0.60 0.79 0.94 1.16 1.71
Return on net revenues 25.7% 25.4% 24.7% 24.5% 25.3%
Cash and short-term investments $1,345 $2,290 $3,614 $4,750 $6,940
Total assets 2,640 3,805 5,363 7,210 10,093
Stockholders' equity 2,193 3,242 4,450 5,333 6,908

*Adjusted for the December, 1996 two for one stock split.
This was a defining year for Microsoft, and our 21st consecutive year of growth in both revenues and profits. For the fiscal year ended June 30, 1996, revenues totaled $8.67 billion, a 46% increase over the $5.94 billion reported last year. Net income totaled $2.20 billion, and earnings per share were $1.71, representing a 47% increase compared to $1.16 in fiscal 1995.

Windows® 95 made a major contribution. Desktop application product revenues were also very strong. The OEM channel closed the year at a record $2.5 billion, an increase of 52% over the previous year. And we continued our success internationally, especially in the Far East and Intercontinental regions.

Perhaps most important, we delivered on our commitment to embrace and extend the Internet. We released Microsoft Internet Explorer 3.0 and Internet Information Server, while adding Web functionality to our existing products. These and a multitude of other new products are the result of continued research and development activities. In 21 years, we have spent more than $4.4 billion on products and technologies designed to bring more information to your fingertips.

Black Line



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