Volcano Coffee Company

1996 Quarterly Earnings Statements            
(In millions, except earnings per share) [Unaudited]          
  3 - Months Ended
  March 30
  1995 1996
Net Revenues $983 $1,247
Cost of Revenues 159 186
Gross Profit 824 1,061
Operating Expenses          
        Research and Development 134 178
        Sales and Marketing 312 395
        General and Administrative 35 51
Total Operating Expenses 481 624
Other Expenses -4 -2
Income          
        Operating Income 343 437
        Interest Income - Net 23 36
        Income before income taxes 362 471
        Provision for income taxes 123 155
Net Income 239 316
Earnings per share (1) $0.39 $0.51
Weighted average shares outstanding (1) 606 622

©1996 Microsoft Corporation