<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-30-1998
<PERIOD-END>                               SEP-30-1997
<CASH>                                           9,634
<SECURITIES>                                         0
<RECEIVABLES>                                      788
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                10,838
<PP&E>                                           2,800
<DEPRECIATION>                                   1,316
<TOTAL-ASSETS>                                  15,366
<CURRENT-LIABILITIES>                            3,902
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                        980
<COMMON>                                         5,630
<OTHER-SE>                                       4,854
<TOTAL-LIABILITY-AND-EQUITY>                    15,366
<SALES>                                          3,334
<TOTAL-REVENUES>                                 3,334
<CGS>                                              534
<TOTAL-COSTS>                                      534
<OTHER-EXPENSES>                                 1,740
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                  1,202
<INCOME-TAX>                                       539
<INCOME-CONTINUING>                                663
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       663
<EPS-BASIC>                                       0.14<F1>
<EPS-DILUTED>                                     0.12<F1>
<FN>
<F1>EPS PRIMARY AND EPS DILUTED HAVE BEEN RESTED TO REFLECT STOCK SPLITS
</FN>