7/19/2002 - Sun Microsystems, Inc. (NASDAQ: SUNW) a leader in systems and solutions that make the Net work, reported results today for its fiscal fourth quarter which ended June 30, 2002.
Revenues for the fourth quarter were $3.4 billion, up 10 percent, as compared with $3.1 billion in revenues reported for the third quarter of fiscal year 2002. Net income for the fourth quarter was $28 million and the net income per common share was $.01 (excluding an $18 million loss on equity investments, a $4 million credit for adjustments to restructuring charges, and a $6 million benefit for the related tax effects). Including these amounts, GAAP net income was $20 million and GAAP earnings per share was $.01.
For the full 2002 fiscal year, Sun reported revenues of $12.5 billion, down 32 percent from record high revenues of the prior year. Net loss for the 2002 fiscal year was $255 million and the net loss per common share was $.08 (excluding a $517 million restructuring charge, a $99 million loss on equity investments, a $3 million charge for in-process research and development, and a $246 million benefit for the related tax effects). Including these amounts, GAAP net loss was $628 million and GAAP loss per share was $.19.
Sun's Chairman, CEO, and President Scott McNealy said, "We stated a goal of reporting a profit this quarter and we achieved that goal. I'm immensely proud of my team. They have integrity. They have talent. They have tenacity. And, they achieved this goal while protecting investments in research and development, aggressively managing cash balances, and gaining market share from competitors."
McNealy continued, "We achieved gains in low-end server sales through the continued success of our UltraSPARC® III processor-based products such as the Sun Fire[tm] V880 2-way, 4-way, and 8-way servers and the Sun Fire[tm] 280R, rack-mountable 2-way server. We also increased sales of our high-end UltraSPARC III processor-based products such as the Sun Fire 6800 and Sun Fire 15K mainframe replacement servers. These gains were augmented by strong market acceptance of our newest products such as the Sun Fire V480 4-way server in the low-end space and the Sun Fire 12K server in the high-end space. The Sun Fire 12K server has been particularly well received as it is taking sales from the competition while strengthening and enhancing sales of other Sun high-end products."
McNealy concluded, "We're also pleased that our storage revenues grew with products such as the Sun StorEdge[tm] T3 and Sun StorEdge 3900, 6900, and 9900 families. Finally, we continued to roll-out ground-breaking software offerings such as the Solaris[tm] 9 Operating Environment, StarOffice[tm] 6.0 Office Suite, Sun[tm] ONE Portal Server 6, Sun[tm] Grid Engine, Enterprise Edition 5.3, and a new Sun ONE Application Server 7 product line that will make the core version of the Java[tm] platform-based application server free to enterprises and ISVs on all leading platforms. Along with Sun services, these products continued to reinforce Sun's position as one of the few systems companies capable of developing and integrating hardware, software, and services for enterprise customers."
Steve McGowan, Executive Vice President of Corporate Resources and Chief Financial Officer said, "We were particularly pleased with our strong performance in the U.S. geography which reported 20% revenue growth over the prior quarter. In addition, we continued to generate positive cash flow from operations and ended the quarter with a cash and marketable securities balance of approximately $5.9 billion after repurchasing $226 million in stock during the quarter."
Sun has scheduled a conference call today to discuss its earnings for the fourth quarter of fiscal year 2002 at 1:30 p.m. (PDT), which is being broadcast live at www.sun.com/investors
This news release contains projections and other forward-looking statements regarding future results and the future performance of Sun Microsystems, Inc., including a statement that the Sun Fire 12K is taking sales from the competition while strengthening and enhancing sales of other Sun high-end products. Such statement is just a prediction about Sun's ability to continue such sales performance and involves risks and uncertainties such that actual results and performance may differ materially. Factors that might cause such a difference include risks associated with increased competition, continued adverse macroeconomic conditions in the U.S. and internationally, including adverse business conditions in the specific markets for Sun's products, lack of success in the timely development, production and acceptance of new products and services, lack of success in technological advancements, and our ability to attract, hire and retain key and qualified employees. These and other risks are detailed from time-to-time in Sun's periodic reports that are filed with the Securities and Exchange Commission, including Sun's annual report on Form 10-K for the fiscal year ended June 30, 2001, and its quarterly reports on Form 10-Q for the fiscal quarters ended September 30, 2001, December 30, 2001 and March 31, 2002.
About Sun Microsystems, Inc.
Since its inception in 1982, a singular vision -- "The Network Is The Computer[tm]" -- has propelled Sun Microsystems, Inc. (Nasdaq: SUNW) to its position as a leading provider of industrial-strength hardware, software and services that make the Net work. Sun can be found in more than 170 countries and on the World Wide Web at http://sun.com
Sun, Sun Microsystems, the Sun logo, Sun Fire, Sun StorEdge, StarOffice, Java, and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and in other countries. All SPARC trademarks are used under license and are trademarks or registered trademarks of SPARC International, Inc. in the United States and other countries. Products bearing SPARC trademarks are based upon an architecture developed by Sun Microsystems, Inc.
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