Microsoft Corp. has announced revenue of $13.37 billion for the quarter ended June 30, 2007, a 13 percent increase over the same period of the prior year. Diluted earnings per share for the quarter were $0.31. Earnings per share would have been $0.39 were it not for the previously announced charges primarily related to Xbox 360 warranty policies.

For the fiscal year ended June 30, 2007, Microsoft announced revenue of $51.12 billion, a 15 percent increase over the prior year. Diluted earnings per share for the year were $1.42. Excluding certain items, earnings per share would have been $1.49, an increase of 17 percent. $31 billion in cash, or approximately 175 percent of operating cash flow, was returned to shareholders during the year through share buybacks and dividends.

“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,” said Kevin Turner, chief operating officer at Microsoft.

“Our results this quarter cap off an extremely strong fiscal year for the company,” said Chris Liddell, chief financial officer at Microsoft. “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.”

The previous quarter was also very kind to the software giant. Microsoft witnessed a 32 percent increase in revenue to $14.4 billion, operating income of $6.59 billion and net income of $4.93 billion. Earnings per share also jumped 72 percent in Q3 to $0.50.