preceding quarter. Microsoft noted that revenue growth for MED was "driven by Windows Mobile," with mobile representing 43 percent year-over-year growth vs. 27 percent for embedded.

Mobile and Embedded sector revenue quarter-by-quarter (in millions of dollars)
The MED segment had an operating loss of $14 million in Q4 of FY05, a major improvement over the $39 million operating loss in Q4 of FY04. For the entire FY05, MED's operating loss shrank to $46 million, compared to a $219 million operating loss for the prior fiscal year.

Mobile and Embedded sector operating losses (in millions of dollars), quarter-by-quarter
The company as a whole reported Q4 revenue of $10.16 billion for all segments, a nine percent increase over the results in the same period of the prior year. Operating income for the fourth quarter was $2.99 billion, compared to $3.13 billion in the prior year.

Microsoft's FY05 Q4 revenue -- the Mobile and Embedded segment grew fastest, but represents a very tiny slice of the $10.16 billion pie
For the entire fiscal year 2005, Microsoft reported record total revenue of $39.79 billion, an eight percent increase over the $36.84 billion reported last year. Net income for fiscal year 2005 was $12.25 billion. "We closed out a record fiscal year with strong revenue growth in the fourth quarter driven by healthy, broad-based demand across all customer segments and channels," says Chris Liddell, chief financial officer at Microsoft.
Microsoft's total revenue for its MED sector in FY05 tallies up at $337 million, presumably maintaining Microsoft as the revenue leader in the embedded software industry, ahead of second-place
Wind River, which reported $235 million net revenue for its most recently completed fiscal year that ended January 31, 2005. Nevertheless, the MED segment currently accounts for less than one percent of Microsoft's total revenue, both for Q4 and for the entire fiscal year, as shown in the above pie chart.
Related stories: