Microsoft became well organized in the years to come. Profit margins have increased significantly. In fiscal years 1995 through 2001, revenue growth, IT operations efficiency, and manufacturing cost reductions were due to outsourcing manufacturing. The increase is simply due to the strengthening of business methods. Although operating expenses fell from 51 percent to 40 percent of net revenue in those six years, that was a savings of $2.7 billion, based on fiscal 2001 sales (Herbold,