Microsoft Monday said it will make changes to its financial reporting beginning in fiscal 2007 to reflect organizational changes.
Microsoft will report financial performance based on five operating segments — Client, Server and Tools, Online Services Group, Microsoft Business Division and Microsoft Entertainment and Devices Division. Previously, the company reported financial results from seven operating segments.
According to Microsoft, the changes reflect a restructuring the company has been in the midst of since September, when it pared down seven divisions into three — the Microsoft Platform Products & Services Division, the Microsoft Business Division and the Microsoft Entertainment & Devices Division — each with its own president.
Under the new reporting rules, Microsoft has combined financial reporting from its Information Worker and Microsoft Business Solutions into one segment, the Microsoft Business Division. Similarly, financial reporting from what previously was the Mobile and Embedded Devices segment will now be included as part of Microsoft’s Entertainment and Devices Division.
The operating segments of Client, Server and Tools, and Online Services Group all are a part of Microsoft’s Platform Products & Services Division.
Beginning next year Microsoft also will include financial reporting from its Exchange Server business, including client access licenses related to that product, in its Business Division. Previously, the company reported financial results for Exchange Server in the Server and Tools segment. Exchange Server is now part of the newly formed Unified Communications Group, which is housed in the Microsoft Business Division.
Microsoft plans to report its fiscal 2006 year-end and fourth-quarter results on Thursday under its previous reporting structure, the company said. Microsoft’s fiscal 2007 year began July 1.
