Sun Microsystems Reports Year Over Year Revenue Growth for Second Consecutive Quarter; Increases Gross Margin Percentage Sequentially
SANTA CLARA, Calif., Oct. 14 /PRNewswire-FirstCall/ -- Sun Microsystems, Inc., (Nasdaq: SUNW - News) reported results today for its fiscal first quarter, which ended September 26, 2004.
Revenues for the first quarter grew to $2.628 billion, an increase of 3.6 percent as compared with $2.536 billion for the first quarter of fiscal 2004. Total gross margin as a percent of revenues was 39.8 percent, a decrease of 0.3 percentage points as compared with the first quarter of fiscal 2004. Excluding the $82 million charge related to a litigation settlement with Kodak, gross margin would have been $1.128 billion, or 42.9 percent on a non- GAAP basis. Net loss for the first quarter of fiscal 2005 was $174 million or $0.05 per share as compared with a net loss of $286 million or $0.09 per share for the first quarter of fiscal 2004. This loss includes a charge of $108 million for previously announced workforce and real estate restructuring, an $82 million charge related to litigation settlement, a $4 million loss on equity investments, and a $7 million benefit for related tax effects. Excluding these amounts, net income for the quarter on a non-GAAP basis would have been $13 million.
Cash generated from operating activities was $124 million for the quarter, and the balance of cash and marketable debt securities was $7.433 billion.
"The first fiscal quarter is usually our toughest but the management team executed well operationally," said Scott McNealy, chairman and chief executive officer, Sun Microsystems, Inc. "Following a solid June quarter, we now have two quarters in a row of year over year revenue growth. And we are on the offense again as a result of our newly revamped product line, a result of our sometimes controversial but continued commitment to R&D investments in the last three years. Stay tuned as we announce Solaris(TM) 10 OS in November. We believe this is one of our best new products in maybe a decade. And it runs on Opteron and SPARC®."
Steve McGowan, Sun's chief financial officer and executive vice president, corporate resources, said, "We're very pleased with fiscal Q1 results. We grew revenue year-over-year for the second consecutive quarter, increased our gross margin percentage sequentially, lowered combined R&D and SG&A spending by over $260 million sequentially, and generated positive cash flow from operations."
Sun has scheduled a conference call today to discuss its earnings for the first quarter at 1:30 p.m. (PT), which is being broadcast live at www.sun.com/investors. |
