Cost of Revenue and Expenses
Cost of Revenue (or Cost of Goods Sold)
MSFT reported COR for FY end Jun 2008 to have decreased $683 million or 13%.
This reflects the $1.06 Billion RROD charge from FY End Jun 2007.
Again doing simple math, the COR for FY End Jun 2008, this figure should be $4,571(*).
Again based on simple math:
Total COR for FY End Jun 2007 = $5,254(*)
Check: 5,254 less 683 = 4,571; 683 is 13% of 5,254
However, we need to strip out the RROD charge so the numbers would be more comparable.
The COR for FY End Jun 2007 less the $1.06 Billion RROD Charge = $4,194(*)
This makes sense because the COR for FY end Jun 2008 should be higher than FY end Jun 2007 because Revenue is higher.
Sales & Marketing FY End Jun 2008
MSFT reported that Sales & Marketing expenses increased by $93 million or 8%.
Therefore:
Sales & Marketing FY End Jun 2008 = $1,256(*)
Sales & Marketing FY End Jun 2007 = $1,163(*)
R&D FY End Jun 2008
MSFT reported R&D expenses increased by $242 million or 18%
Therefore:
R&D FY End Jun 2008 = $1,586(*)
R&D FY End Jun 2007 = $1,344(*)
