Sun Microsystems Reports Preliminary First Quarter Results
PALO ALTO, Calif., Oct. 5 /PRNewswire/ -- Sun Microsystems, Inc. (Nasdaq: SUNW - news) a leading provider of hardware, software and services that power enterprises and network computing, reported today that based on preliminary financial data, it expects revenue for its first quarter ended September 30, 2001 to be in the range of $2.7 and $2.9 billion. Based on preliminary data, earnings on an operational basis will be a loss in the range of ($0.05) to ($0.07) per diluted common share.
Sun is announcing a program to reduce its workforce by approximately 9% as well as consolidate excess facilities. As a result of these capacity reductions, the Company expects to record a charge of approximately $500 million in the fiscal second quarter.
Sun's Chairman and CEO, Scott McNealy said, ``Sun's position as a leading provider of Internet and network infrastructure is stronger than ever, but the current economic environment is obviously very difficult. The computer industry is continuing to consolidate and downsize itself. In addition, the events of September 11 have impacted us all. Things were tough with the economy before, but now we are facing increasing uncertainties both in the U.S. and globally. To ensure the long term health of the business, we are making structural changes to the capacity of our company.''
McNealy continued, ``Over the past several months, we've been aggressively managing costs in all areas. Our employees came through in force, and without that we would clearly be talking about reducing capacity to an even greater extent. We intend to get the business profitable again as soon as possible.''
McNealy added, ``We have the right vision and strategy. We will continue to develop the great technologies and products that have been the hallmark of Sun. We're going to stay focused on the business and the strength of our products -- highlighted by last week's introduction of the Sun Fire(TM) 15K, our new high-end server; the continued introduction of higher performing UltraSPARC(TM) III chip sets throughout the product line; the improved competitive position of our Sun StorEdge(TM) storage offerings; the impressive breadth and depth of the Sun(TM) Open Net Environment (Sun ONE) software stack; and the momentum we continue to see in our services business.''
McNealy concluded, ``The well documented macroeconomic factors throughout the world are certainly weighing heavily on our customers and partners, but we are confident that the market opportunities for Sun are absolutely huge. We have absolutely no doubt that we will emerge from this environment with a stronger, more focused company.''
Sun has scheduled a conference call today, October 5, 2001 to discuss its earnings expectations for Q1 fiscal 2002 at 6:30 a.m. (PT), which is being broadcast live at www.sun.com/investors. A replay of the conference call will also be available via the ``PostView'' service. The phone number for postview is 800-476-6701 or 320-475-6701, and the conference reservation number is 606301.
This news release contains projections and other forward-looking statements regarding future results and the future performance of Sun Microsystems, Inc., including statements relating to Sun's expectations as to revenues and earnings (loss) per share for the first quarter of fiscal 2002, Sun's expectations as to accounting charges related to the announced restructuring program, Sun's position as a leading provider of internet and network infrastructure being stronger than ever, the continued consolidation and downsizing of the computer industry, Sun's ability to ensure the long-term health of the company by making structural changes to the capacity of the company, Sun's intention to get the business profitable again as soon as possible, Sun's ability to continue to develop great technologies and products, Sun's ability to continue to invest in R&D, the viability of Sun's vision and strategy, Sun's ability to stay focused on the business and strategy of Sun's products, the continued improvement of the competitive position of Sun's storage products, the continued successful introduction of Sun's higher performing UltraSPARC III chipsets throughout Sun's product line, the continued momentum in Sun's services business, the continued success of the Sun ONE software stack, Sun's market opportunities, Sun's ability to emerge from this environment with a stronger, more focused company. Such statements are just predictions and involve risks and uncertainties such that actual results and performance may differ materially. Factors that might cause such a difference include risks associated with increased competition, continued adverse changes in general economic conditions in the U.S. and internationally, including adverse changes in the specific markets for Sun's products, adverse business conditions, adverse changes in customer order patterns, lack of success in the timely development, production and acceptance of new products and services, pricing pressures, lack of success in technological advancements, Sun's lack of ability to compete in the highly competitive and rapidly changing marketplace, risks associated with foreign operations, failure to reduce costs or improve operating efficiencies, and the lack of ability to retain key and qualified employees. These and other risks are detailed from time to time in Sun's periodic reports that are filed with the Securities and Exchange Commission, including Sun's annual report on Form 10-K for the fiscal year ended June 30, 2001. |
