Tuesday February 2 2:44 AM ET
Sun Micro Sees Higher Second-Half Revenues
SAN FRANCISCO (Reuters) - Sun Microsystems Inc. (Nasdaq:SUNW - news) Chief Financial Officer Michael Lehman Monday reiterated his forecast for revenues to accelerate in the second half of its fiscal year.
He also said at NationsBanc Montgomery Securities technology conference that he was not uncomfortable with analysts' estimates of
revenues growth of 20 percent or so in the second half of fiscal 1999.
In a recent conference call with analysts, Lehman said that Sun's revenues would accelerate from 16 percent growth in the first half of
fiscal 1999, which ended Dec. 31.
"In the last week or so, we said second-half revenues will accelerate," Lehman told the conference. "Lots of people are out there looking at 20 percent or so growth rates."
Afterward, Lehman told Reuters that while he was not giving official guidance, "I wouldn't say something like that if it was wildly
offbase."
Lehman also reiterated his comments to Sun's worldwide analysts meeting last week.
He said Sun would continue to increase its research-and-developments spending faster than revenue growth. So far, in the first half, Sun's
research-and-development spending was up 22 percent, as the company continues to invest in new technologies such as its Jini networking
technology.
He also said Sun planned to lower sales, general and administrative spending over the next two to three years by about 3 percent of
revenues.
Some ways Sun plans to lower that spending is through more real estate acquisitions compared with leasing, consolidating offices into
more corporate campuses, having more flexible and shared office spaces and moving to outsource some of its internal technology management.
"Over two to three years, we ought to be able to take 300 basis points out of SG&A," Lehman said. One hundred basis points equals one
full percentage point. |
