7/24/2003 - Sun Microsystems, Inc. (NASDAQ: SUNW) a leader in systems and solutions that make the Net work, reported results for its fiscal fourth quarter and full fiscal year which ended June 30, 2003.
Revenues for the fourth quarter were $2.982 billion, a decline of 13 percent as compared with $3.420 billion for the fourth quarter of fiscal 2002. Total gross margin as a percent of revenues was 43.7 percent, an increase of 2.4 percentage points as compared with the fourth quarter of fiscal 2002. Net income for the fourth quarter of fiscal 2003 was $12 million or zero cents per share compared with a net income of $61 million or a net income of $.02 per share for the fourth quarter of fiscal 2002.
Cash generated from operating activities was $335 million for the quarter, and the balance of cash and marketable securities was over $5.7 billion.
For the full 2003 fiscal year, Sun reported revenues of $11.434 billion, a decline of 8.5 percent as compared with $12.496 billion for the full 2002 fiscal year. Total gross margin as a percent of revenues was 43.2 percent, an increase of 3.9 percentage points as compared with the 2002 fiscal year. The net loss for fiscal year 2003 was $2.378 billion or a net loss of $.75 per share as compared with a net loss of $587 million or a net loss per share of $.18 for the 2002 fiscal year. The net loss for fiscal year 2003 included a non-cash impairment expense of $2.125 billion.
Steve McGowan, Sun's Chief Financial Officer and Executive Vice President, Corporate Resources said, "We're pleased we generated $1 billion in cash from operations in fiscal 2003 and ended the year with a cash and marketable securities balance in excess of $5.7 billion. During fiscal 2003, we significantly reduced costs in the company. For example, we reduced SG&A expenses by nearly $500 million and improved gross margin by almost 4 percentage points on an annual basis. We also reduced capital expenditures and inventory by almost $200 million each while maintaining our nearly $2 billion investment in R&D, the lifeblood of our company."
"We've made solid progress throughout the fiscal year, delivering on key initiatives such as NC03, low cost computing, N1 and Project Orion. At the same time, we've driven internal costs down while continuing our investment in R&D," added Scott McNealy, Sun's Chairman, President, and CEO. "We enter the new fiscal year with an intense focus toward growing revenue, improving profitability and maintaining positive cash flow from operations. We're well positioned to take full advantage of market opportunity over the long-term with a strong pipeline of innovations, one of the world's largest partner networks, and an intense competitive drive to deliver quality products and services with value to our customers and shareholders."
About Sun Microsystems, Inc.
Since its inception in 1982, a singular vision -- "The Network Is The Computer" -- 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 100 countries and on the World Wide Web at http://sun.com
Sun, Sun Microsystems, the Sun logo, N1, and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and in other countries.
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