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  SUN MICROSYSTEMS REPORTS 26 PERCENT REVENUE INCREASE (FY Q1)
   
SunFLASH Vol 22 #12					        October 1990 
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MOUNTAIN VIEW, Calif. --October 23, 1990-- Sun Microsystems, Inc.
(SUNW) today reported results for its first quarter ended September 28,
1990.  Revenues for the first quarter were $677.0 million, a 26%
increase over the $538.5 million reported in the same period a year
ago.  Net income for the quarter was up 403%, to $26.1 million, or
$0.26 per share, from the $5.2 million, or $0.07 per share, in the
corresponding period of fiscal 1990.  The company shipped 38,600 units,
up 36% over the first quarter of last year.

During the first quarter 50% of Sun's revenues were derived from
outside the U.S.  The strength of foreign currencies relative to the
U.S. dollar contributed to both revenue and net income.

Scott McNealy, chairman, president and CEO of Sun said, "Although
bookings and revenues were in balance during the first quarter,
operating results were not at levels we had expected. While we assess
the effect of both Sun specific and external issues we are taking a
cautious approach to the current quarter including freezing headcount
levels and curtailing expenses.  Although we are being cautious, we
continue to believe that, absent a major economic slowdown, the demand
for our products will continue to grow, though perhaps less rapidly
than we anticipated a quarter ago."

During the quarter the company issued 4.6 million shares of common
stock to AT&T and received $192 million. The company ended the quarter
with $495 million in cash.  In addition, Sun's long-term debt-to-equity
ratio decreased to 34% from 39% at the end of fiscal 1990.

Sun Microsystems, Inc., headquartered in Mountain View, California, is
a leading worldwide supplier of network-based distributed computing
systems, including professional workstations, servers and UNIX(R)
operating system and productivity software.

Contact:
Bob Haggerty (415) 336-2247
Investor Relations

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