[reitzensteinm]

Disclaimer: I'm no accountant and maybe I'm not reading the figures correctly, but here goes.

It's closer to 61%/37% search/adsense, but look at the profit. It seems to me that for Adsense the revenue of 1,197mm this quarter had a 'Traffic Acquisition Cost' (i.e. what they pay to website owners) of 975mm, so they see very little profit from that.

Without search, this quarter, Google would have been 947mm in the red instead of 1030mm in the black. Without Adsense, which is 37% of their revenue, they'd have lost just 222mm from their bottom line.

In contrast, Microsoft's biggest earner in 2006, Office, had a revenue of 14,488mm without which they'd still be in the black by 3774mm pre tax. Which is actually far less comfortable than I expected, but Google is under much more threat from Newgle than Micorosft is from any of their competitors, present or future.

Links: http://www.microsoft.com/msft/reports/default.mspx http://investor.google.com/fin_data.html