<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>                   YEAR
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-END>                               JUN-30-1998
<CASH>                                         $13,927
<SECURITIES>                                         0
<RECEIVABLES>                                    1,460
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                15,889
<PP&E>                                           3,052
<DEPRECIATION>                                   1,547
<TOTAL-ASSETS>                                  22,357
<CURRENT-LIABILITIES>                            5,730
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                        980
<COMMON>                                         8,025
<OTHER-SE>                                       7,622
<TOTAL-LIABILITY-AND-EQUITY>                    22,357
<SALES>                                         15,262
<TOTAL-REVENUES>                                15,262
<CGS>                                            2,460
<TOTAL-COSTS>                                    2,460
<OTHER-EXPENSES>                                 6,388
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                  7,117
<INCOME-TAX>                                     2,627
<INCOME-CONTINUING>                              4,490
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     4,490
<EPS-BASIC>                                       0.92<F1>
<EPS-DILUTED>                                     0.84<F1>
<FN>
<F1>EPS PRIMARY AND EPS DILUTED HAVE BEEN RESTATED TO REFLECT STOCK SPLITS
</FN>