PALO ALTO, Calif., Apr 13, 2000 /PRNewswire via COMTEX/ -- Sun Microsystems,
Inc., (Nasdaq: SUNW) broke through the $4 billion quarterly revenue mark for the
first time ever, in its reported results for the third quarter which ended March
26, 2000. Revenues for the third quarter were $4.005 billion, up 35 percent
compared with the third quarter of fiscal 1999. Net income for the third quarter
was $436.2 million, up 49 percent compared with last year's net income of $291.9
million (excluding gains on the sale of equity investments for fiscal year 2000
and acquisition-related charges for fiscal years 2000 and 1999, net of related
income taxes). Third quarter earnings per share was $.26, an increase of 44%
over the corresponding period a year ago (excluding gains on the sale of equity
investments for fiscal year 2000 and acquisition-related charges for fiscal
years 2000 and 1999, net of related income taxes).
During the third quarter, special items resulted in a net gain of $107.3
million. These items were comprised of gains on the sale of equity investments
of $112.2 million and an acquisition-related charge for in-process research and
development of $4.9 million in connection with the acquisition of Trustbase
Limited. Including these special items, net income and earnings per share for
the third quarter of fiscal year 2000 were reported as $508.1 million and $.30
respectively.
For the first nine months of fiscal 2000, Sun reported revenues of $10.704
billion, up 29 percent over the corresponding period a year ago. Net income was
$1.065 billion, up 40 percent over the same period a year earlier (excluding
gains on the sale of equity investments for fiscal year 2000 and
acquisition-related charges for fiscal years 2000 and 1999, net of related
income taxes). Earnings per share, excluding these special items, was $.63, an
increase of 34 percent from the previous year's results. Including these special
items, net income was $1.134 billion and earnings per share totaled $.67 for the
first nine months of fiscal year 2000.
"Our business accelerated during the so called 'Y2K lockdown' in Q2 and we have
been making break away market share gains ever since," said Scott McNealy, Chief
Executive Officer of Sun Microsystems. "The Solaris(TM) 8 Operating Environment
has become the foundation for building dot-com solutions for the Net Economy.
Sun's vision continues to be widely accepted and resonates with bricksters,
clicksters, service providers and network equipment providers."
McNealy added, "When you add up the breadth of announcements ranging from deals
with Vodaphone, Enron and Palm Computing, to record unit volume and revenue for
our server product line, you can see that our platforms and technologies are
being deployed across a broad spectrum of applications."
McNealy concluded, "The recent kickoff of the iForce(TM) initiative has been a
great success, with over 1,000 start-up dot-com companies developing on Sun's
industry leading Internet platform. Our product and technology portfolio of
SPARC(TM), Solaris, StorEdge(TM), Java(TM), Jini(TM), iPlanet(TM) and Forte(TM),
combined with our enterprise services, offer an outstanding blueprint for
providing our customers with the expertise to architect, design and grow their
dot-com business."
Michael E. Lehman, Sun's Vice President of Corporate Resources and Chief
Financial Officer commented, "Our results showed that we delivered yet another
outstanding quarter. Our balance sheet is stronger than ever, with over $5
billion dollars in cash and marketable securities. During the quarter, we
generated nearly $1 billion in cash from operations, more than any other third
fiscal quarter in Sun's history."
Lehman concluded, "As evidenced by our record bookings growth of 41% on a year
over year basis, our investments in R&D, demand creation, application capture
and branding continue to pay off."
All references to earnings per share set forth in this press release are diluted
earnings per share as defined within Statement of Financial Accounting Standards
No. 128.
This news release contains forward-looking statements, which are based on
current expectations that involve risks and uncertainties. Sun's actual results
may differ materially from the results discussed in these forward- looking
statements. Factors that might cause such a difference include risks surrounding
the timely development, production, and acceptance of new products and services,
and Sun's ability to compete in the highly competitive and rapidly changing
marketplace. These and other risks are detailed from time to time in Sun's
periodic reports filed with the Securities and Exchange Commission, including,
but not limited to, its report on Form 10-K for its fiscal year ended June 30,
1999 and its reports on Form 10-Q for its fiscal quarters ended December 26,
1999 and September 26, 1999.
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 hardware, software and services for
establishing enterprise-wide intranets and expanding the power of the Internet.
With more than $14 billion in annual revenues, Sun can be found in more than 150
countries and on the World Wide Web at sun.com.
Sun, the Sun logo, Sun Microsystems, Sun StorEdge, Solaris, Java, Jini, iPlanet,
Forte, iForce, and "The Network Is The Computer," are trademarks or registered
trademarks of Sun Microsystems, Inc. in the United States and 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.
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
(unaudited) (unaudited)
March 26 March 28 March 26 March 28
2000 1999 2000 1999
Net revenues $4,004,689 $2,956,394 $10,704,168 $8,268,686
Costs and expenses:
Cost of sales 1,912,785 1,402,264 5,144,764 3,976,259
Research and
development 417,002 327,016 1,171,598 921,795
Selling, general
and
administrative 1,067,476 814,375 2,901,809 2,294,319
In-process
research and
development 4,900 28,700 8,400 120,700
Total costs
and expenses 3,402,163 2,572,355 9,226,571 7,313,073
Operating income 602,526 384,039 1,477,597 955,613
Interest income, net 43,684 22,683 103,814 59,089
Gain on sale of
investments 112,200 0 112,200 0
Income before
income taxes 758,410 406,722 1,693,611 1,014,702
Provision for
income taxes 250,275 144,985 559,929 380,018
Net income $508,135 $261,737 $1,133,682 $634,684
Net income per common
share - basic $0.32 $0.17 $0.72 $0.41
Net income per common
share - diluted $0.30 $0.16 $0.67 $0.39
Shares used in the
calculation of net
income per share
- basic 1,584,901 1,551,942 1,570,783 1,538,245
Shares used in the
calculation of net
income per share
- diluted 1,698,650 1,659,586 1,684,274 1,632,049
SUN MICROSYSTEMS, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME
EXCLUDING ACQUISITION-RELATED CHARGES AND GAIN ON SALE OF INVESTMENTS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
(unaudited) (unaudited)
March 26 March 28 March 26 March 28
2000 1999 2000 1999
Net revenues $4,004,689 $2,956,394 $10,704,168 $8,268,686
Costs and expenses:
Cost of sales 1,912,785 1,402,264 5,144,764 3,976,259
Research and
development 417,002 327,016 1,171,598 921,795
Selling, general
and
administrative 1,067,476 814,375 2,901,809 2,294,319
Total costs and
expenses 3,397,263 2,543,655 9,218,171 7,192,373
Operating income 607,426 412,739 1,485,997 1,076,313
Interest income,
net 43,684 22,683 103,814 59,089
Income before
income taxes 651,110 435,422 1,589,811 1,135,402
Provision for
income taxes 214,866 143,530 524,332 375,336
Net income $436,244 $291,892 $1,065,479 $760,066
Net income per common
share - basic $0.28 $0.19 $0.68 $0.49
Net income per common
share - diluted $0.26 $0.18 $0.63 $0.47
Shares used in the
calculation of net
income per share
- basic 1,584,901 1,551,942 1,570,783 1,538,245
Shares used in the
calculation of net
income per share
- diluted 1,698,650 1,659,586 1,684,274 1,632,049
Notes: The above pro forma amounts have been adjusted to eliminate
acquisition-related charges of $4.9 million and $28.7 million for in process R&D
and the related income tax effects for the three months ended March 26, 2000 and
March 28, 1999, respectively, and acquisition-related charges of $8.4 million
and $120.7 million for in-process R&D and the related income tax effects for the
nine months ended March 26, 2000 and March 28, 1999, respectively.
The above pro forma amounts have been adjusted to eliminate gains on sale of
investments of $112.2 million for the three and nine months ended March 26,
2000.
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 26 June 30,
2000 1999
ASSETS (unaudited) (audited)
Current assets:
Cash, cash equivalents and short-term
marketable securities $3,132,861 $2,691,720
Accounts receivable, net 2,531,549 2,310,142
Inventories 557,589 307,873
Other current assets 1,122,079 878,891
Total current assets 7,344,078 6,188,626
Property, plant and equipment, net 1,894,416 1,613,628
Long-term marketable securities 1,912,357 0
Other assets, net 1,350,916 696,581
$12,501,767 $8,498,835
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $1,722 $1,646
Accounts payable 851,661 755,797
Accrued liabilities 2,214,548 1,655,554
Income taxes payable 152,122 402,813
Deferred revenue 623,773 432,452
Total current liabilities 3,843,826 3,248,262
Long-term debt and other obligations 2,134,204 383,297
Stockholders' equity 6,523,737 4,867,276
$12,501,767 $8,498,835
SOURCE Sun Microsystems, Inc.
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: investors, Mark Paisley, 650-336-2238 or mark.paisley@sun.com;
press, Elizabeth McNichols, 650-786-0368 or elizabeth.mcnichols@sun.com; or
industry analysts, Angela Grady, 650-786-7252 or angela.grady@sun.com; all of
Sun Microsystems, Inc.
KEYWORD: California
INDUSTRY KEYWORD: CPR
MLM
SUBJECT CODE: ERN
URL: sun.com |
