• by July 20, 2007

Microsoft's annual revenue surpassed $50 billion ($51.12 billion, to be exact) for the fiscal year ended June 30, an increase of 15% over 2006. Its Online Services Business didn't fare quite as well--generating $2.47 billion for the fiscal year, or 5% of total company revenues, and representing an increase of about 8% over fiscal 2006's $2.3 billion.

The online picture was rosier in the fiscal fourth quarter, however, as Microsoft's total revenue rose 13% year-over-year to $13.37 billion, but the online division's revenue jumped nearly 19%--$688 million in 2007 versus $580 million in 2006.

Ad revenue was clearly the cause of the fourth-quarter growth, as it jumped 33% from $135 million to $544 million year-over-year. For the full year, ad revenue grew 21%, from $314 million to $1.84 billion.

The online division reported increased operating losses for both the quarter and the year, which Microsoft attributed to such factors as online content expenses, royalties and search and advertising platform investments.

Microsoft estimated that there were 310 million active Hotmail accounts and over 280 million Messenger accounts as of the end of June.