EDD comprises Microsoft's mobile and embedded devices (MED) software platforms (Windows Mobile, Windows CE, and Windows XP Embedded, and Windows Automotive), along with a number of consumer hardware and software products, including the Xbox 360 gaming console and the
Zune multimedia player.
Microsoft no longer reports MED financial details independently of EDD data. However, the company noted that annual revenue in its MED segment was up $138 million, or 28 percent, "driven by sales growth in Windows Mobile and Windows Embedded operating systems," the company said. These figures imply that annual MED revenue for the just-completed fiscal year was approximately $631 million. For the fourth quarter, Microsoft said, MED revenue increased $30 million, or 21 percent, over the prior quarter -- implying total fourth quarter MED revenue of $173 million.
Despite its increased revenue, EDD suffered an increased operating loss for the year, $1.89 billion vs. $1.28 billion last year. According to Microsoft, this was primarily due to a $1.06 billion charge to cover anticipated costs of an extended Xbox 360 warranty, along with Zune launch-related expenses.
Microsoft's COO Kevin Turner stated, "Surpassing $50 billion in annual sales is a testament to the innovation and value that our product groups delivered into the marketplace, as well as the outstanding execution by our field sales, marketing teams and partners to bring that value to life with our customers."
CFO Chris Liddell added, "Our results this quarter cap off an extremely strong fiscal year for the company. We have healthy core businesses and are strategically investing in growth opportunities, which will build on our success and contribute to continued double-digit revenue and earnings growth in fiscal year 2008."
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