sunflash-Distributed to mailing list sunflash@suntri sunflash-Send requests and problem reports to owner-sunflash@suntri.east.sun.com ---------------------------------------------------------------------------- The Florida SunFlash SUN MICROSYSTEMS REPORTS RECORD THIRD QUARTER REVENUES SunFLASH Vol 52 #24 April 1993 ---------------------------------------------------------------------------- Investor contact: Rick Van Hoesen (415) 336-0117 Press contact: Cindee Mock (415) 336-3563 Industry Analyst contact: Tom Henkel (508) 442-0076 MOUNTAIN VIEW, California -- April 20, 1993 -- Sun Microsystems, Inc., (NASDAQ:SUNW) today reported record revenues of $1.141 billion, up 20% from the $952 million reported for the corresponding period of fiscal 1992. Net income for the third quarter was $51.7 million, or $0.47 per share, compared to $61.4 million, or $0.60 per share, for the same period a year ago. The company's computer systems subsidiary, Sun Microsystems Computer Corporation, shipped more than 90,000 SPARC processors during the quarter, 57,000 of which were systems, and the balance of which were upgrades and multiprocessors. SunSoft, Inc., the company's system software subsidiary, distributed 136,000 Solaris(R) and UNIX(R) licenses, 116,000 of which were Solaris 2. For the first nine months of fiscal 1993, Sun recorded revenues of $3.048 billion, up 17% from the same period a year earlier. Net income for the nine-month period was $80.6 million, or $0.77 per share, compared to $135.6 million, or $1.34 per share, reported in the corresponding period a year ago. Kevin C. Melia, Sun's chief financial officer, said, "We achieved volume shipments of the SPARCstation(TM) 10 Model 41 systems, and continued to establish the SPARCstation 10 as the most successful new product family in Sun's history. Through the third quarter, we have shipped nearly 45,000 SPARCstation 10's. In addition, we shipped more than 13,000 of our low-cost MicroSPARC-based desktop workstations, and we made our initial shipments of the new SPARCcenter 2000 enterprise server products. Also, SunSoft distributed more than 116,000 Solaris 2 licenses in the quarter, bringing the total Solaris 2 licenses distributed to nearly a quarter million since shipments began in December. "Profitability was below the year-ago level due to gross margin declines that were partially offset by tightly controlled growth in operating expenses. The gross margin percentage declined from the prior-year quarter due to a heavier mix of upgrade shipments, as well as increased shipments of non-systems components such as memory and storage. We also experienced weakness in several European countries. However, our continuing commitment to control headcount and spending enabled us to increase revenue per employee above $300,000 for the first time, and reduce our operating expenses as a percentage of revenues." Melia concluded, "We have solid cost and asset management, and will continue to emphasize keeping the business lean, focused and financially strong. Tomorrow we are introducing a suite of exciting new products. Included in the announcement will be new high-end desktop systems for volume delivery in June, as well as attractive new pricing for the entire SPARCstation 10 product line." # # # Sun Microsystems, Inc., is an integrated portfolio of businesses that supply distributed computing technologies, products and services. Its innovative open client-server computing solutions include networked workstations and multiprocessing servers, operating system software, silicon designs and other value-added technologies. According to analysts, the company's products command the largest share of one of the computer industry's fastest growing market segments: workstations and servers. Founded in 1982, Sun is a Fortune 150 company headquartered in Mountain View, California. ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ For information send mail to info-sunflash@Sun.COM. Subscription requests should be sent to sunflash-request@Sun.COM. Archives are on solar.nova.edu, ftp.uu.net, sunsite.unc.edu, src.doc.ic.ac.uk and ftp.adelaide.edu.au All prices, availability, and other statements relating to Sun or third party products are valid in the U.S. only. Please contact your local Sales Representative for details of pricing and product availability in your region. Descriptions of, or references to products or publications within SunFlash does not imply an endorsement of that product or publication by Sun Microsystems. Send brief articles (e.g. third party announcements) and include contact information (non-800#, fax #, email, etc) to: John McLaughlin, SunFlash editor, flash@Sun.COM. +1 305 351 4909