Sun Microsystems Reports All Time Record Quarterly Results; 41
Percent Growth in EPS on 19 Percent Revenue Growth
Business Wire - January 15, 1997 16:20
FINANCIAL SUN-MICROSYSTEMS SUNW CALIFORNIA COMPUTERS ELECTRONICS COMED EARNINGS SUNFXB V%BW
P%BW
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 15, 1997--Sun Microsystems, Inc., (NASDAQ: SUNW) today
reported results for the second quarter which ended December 29, 1996. Revenues for the second quarter were a record
$2.082 billion, up nearly 19 percent compared with the second quarter of fiscal 1996. The company's second quarter net
income increased 41 percent to $178.3 million, compared with $126.0 million in the second quarter of the prior fiscal year.
Second quarter earnings per share was a record $.46, an increase of over 41 percent from the $.32 reported for the same
period a year ago after adjusting for the recent 2-for-1 stock split. For the first six months of fiscal 1997, Sun reported
revenues of $3.941 billion, up approximately 22 percent. Net income was $301.7 million, up 43 percent from the same period
a year earlier. Earnings per share was $.77, an increase of 43 percent over the $.53 level of the corresponding period a year
ago.
"The UltraSPARC(TM)/Solaris(TM)/Java(TM) story is playing well in enterprises around the world," said Chief Executive
Officer Scott McNealy. "Our servers and power desktop systems are hot; customers need the superior scalability, reliability
and performance of our products. Our partnerships with leading mission-critical application developers such as Oracle, SAP,
Baan, Informix, PeopleSoft and Sybase are enabling us to succeed and win new accounts in the enterprise computing market.
Sun has established itself as the viable, growing, and profitable alternative to the legacy PC and mainframe architectures of the
last 20 years."
Michael Lehman, Sun's Chief Financial Officer, said, "The current fiscal year continues to yield strong financial results. Sun is
winning big in corporate intranets, the Internet, and the extranet. `The Network Is the Computer(TM)' plays equally well in all
these high growth areas. Our investments in research and development, and sales and support infrastructure are paying off, as
we continue to broaden our global presence."
This news release contains forward-looking statements based on current expectations that involve risks and uncertainties. Sun's
actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such
a difference include those discussed above, as well as risks surrounding the timely development, production and acceptance of
new products and services, Sun's ability to compete in the highly competitive and rapidly changing marketplace and the other
risks 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, 1996 and its report on Form 10-Q for its fiscal quarter
ended September 29, 1996.
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 $7 billion in annual revenues, Sun can be
found in more than 150 countries and on the WorldWide Web at sun.com .
NOTE TO EDITORS: Sun, the Sun logo, Sun Microsystems, Solaris, Java 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 BALANCE SHEETS
(In thousands)
December 29, June 30,
1997 1996
ASSETS (unaudited)
Current assets:
Cash, cash equivalents and
short-term investments 750,740 989,597
Accounts receivable, net 1,392,873 1,206,612
Inventories 394,919 460,914
Other current assets 430,358 376,613
Total current assets 2,968,890 3,033,736
Property, plant and equipment, net 700,938 533,849
Other assets, net 196,792 233,324
3,866,620 3,800,909
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings 26,901 49,161
Accounts payable 383,981 325,067
Accrued liabilities 804,805 801,550
Income taxes payable 137,435 134,934
Other current liabilities 128,329 178,557
Total current liabilities 1,481,451 1,489,269
Long-term debt and other obligations 81,002 60,154
Stockholders' Equity 2,304,167 2,251,486
3,866,620 3,800,909
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
(Unaudited) (Unaudited)
December 29, December 31, December 29, December 31,
1997 1996 1997 1996
Net revenues 2,081,588 1,751,383 3,940,607 3,236,661
Costs and expenses:
Cost of sales 1,033,402 972,665 2,005,503 1,789,498
Research and
development 201,010 166,295 387,278 310,380
Selling, general &
administrative 591,331 434,452 1,115,997 845,868
Total costs and
expenses 1,825,743 1,573,412 3,508,778 2,945,746
Operating income 255,845 177,971 431,829 290,915
Interest income
(expense), net 6,421 7,395 11,893 19,004
Income before income
taxes 262,266 185,366 443,722 309,919
Provision for income
taxes 83,925 59,317 141,991 99,174
Net income 178,341 126,049 301,731 210,745
Net income per
common and
common-equivalent
share 0.46 0.32 0.77 0.54
Common and common-
equivalent shares
used in the
calculation of net
income per
share 388,738 388,600 392,440 393,598
CONTACT: Sun Microsystems, Inc.
Mark Paisley, 415/336-2288 (Investor)
Susanne Vagadori, 415/786-8281 (Press)
Les Lorenzo, 415/786-8244 (Industry Analyst)
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com |
