<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MICROSOFT CORPORATION AND HAS BEEN RESTATED TO REFLECT
THOSE MATTERS DISCUSSED IN ITEM 5 OF FORM 8-K, FOR WHICH THIS SCHEDULE HAS BEEN
ATTACHED AS AN EXHIBIT.
</LEGEND>
<RESTATED>

                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          JUN-30-1999
<PERIOD-END>                               MAR-31-1999
<CASH>                                         $21,761
<SECURITIES>                                         0
<RECEIVABLES>                                    1,689
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                24,058
<PP&E>                                           3,333
<DEPRECIATION>                                   1,888
<TOTAL-ASSETS>                                  33,561
<CURRENT-LIABILITIES>                            7,839
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                        980
<COMMON>                                        12,418
<OTHER-SE>                                      12,324
<TOTAL-LIABILITY-AND-EQUITY>                    33,561
<SALES>                                         13,983
<TOTAL-REVENUES>                                13,983
<CGS>                                            2,145
<TOTAL-COSTS>                                    2,145
<OTHER-EXPENSES>                                 4,813
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                  8,503
<INCOME-TAX>                                     2,920
<INCOME-CONTINUING>                              5,583
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     5,583
<EPS-BASIC>                                       1.11
<EPS-DILUTED>                                     1.02