<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>                   3-MOS
<FISCAL-YEAR-END>                          JUN-30-1999
<PERIOD-END>                               SEP-30-1998
<CASH>                                         $17,242
<SECURITIES>                                         0
<RECEIVABLES>                                    1,153
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                18,964
<PP&E>                                           3,152
<DEPRECIATION>                                   1,686
<TOTAL-ASSETS>                                  25,569
<CURRENT-LIABILITIES>                            6,445
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                        980
<COMMON>                                         9,161
<OTHER-SE>                                       8,983
<TOTAL-LIABILITY-AND-EQUITY>                    25,569
<SALES>                                          4,193
<TOTAL-REVENUES>                                 4,193
<CGS>                                              649
<TOTAL-COSTS>                                      649
<OTHER-EXPENSES>                                 1,462
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                  2,503
<INCOME-TAX>                                       820
<INCOME-CONTINUING>                              1,683
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,683
<EPS-BASIC>                                       0.34<F1>
<EPS-DILUTED>                                     0.31<F1>
<FN>
<F1>EPS PRIMARY AND EPS DILUTED HAVE BEEN RESTATED TO REFLECT STOCK SPLITS
</FN>