Microsoft Profit Inches Up After Charge for Failed Deal

Software giant Microsoft Corp. said Monday that profit inched up in its fourth fiscal quarter to $368 million from $362 million a year earlier, but it noted that expenses were growing more quickly than revenue.

Earnings for the quarter ended June 30 amounted to 58 cents a share, compared to 59 cents a share in the same period a year ago. Microsoft had fewer outstanding shares at that time.

Revenue was $1.62 billion, up 25%.

Microsoft took a 5-cent-a-share charge ($50 million) in the fourth quarter to pay Intuit, a top maker of personal finance software, for calling off their merger. Microsoft decided not to acquire Intuit after the deal was challenged by the Justice Department on antitrust grounds.

In the same period a year ago, Microsoft recorded a 3-cent-a-share gain from the settlement of patent litigation with Stac Electronics.

For the fiscal year, Microsoft profit totaled $1.45 billion, or $2.32 a share. That’s up from $1.15 billion, or $1.88 a share, in fiscal 1994. Annual revenue was $5.94 billion, up 28%.

Bob Herbold, Microsoft’s chief operating officer, said strong sales to computer manufacturers and in the Far East paced the company’s growth.