In the fourth quarter of the fiscal year, Microsoft had operating income of $2.99 billion in, down slightly from $3.13 billion the previous year, and net income of $3.70 billion, reports paidcontent; revenues were $10.16 billion, up 9 percent compared with 4Q04. For the 2005 fiscal year, Microsoft had a record $39.79 billion in revenue; net income was $12.25 billion.

MSN's fourth-quarter revenues were down slightly to $582 million from $588 million, but for fiscal year 2005 revenue increased to $2.274 billion from $2.216 billion. Operating income rose almost 300 percent, to $104 million from $29 million in 4Q04 - and for the year to $405 million, from $87 million.

Advertising revenue for the quarter increased $73 million, or 22 percent, and is attributed display ad revenue via Hotmail and IM. For FY05, ad revenue was up $193 million, or 16 percent.