sunflash-Distributed to mailing list sun/NC/north-carolina sunflash-Send requests, problems to owner-sunflash@suntri.east.sun.com ---------------------------------------------------------------------------- The Florida SunFlash Sun Microsystems Fiscal Year 1993 Q4 Earnings Announcement SunFLASH Vol 55 #27 July 1993 ---------------------------------------------------------------------------- 55.27 Sun Microsystems Fiscal Year 1993 Q4 Earnings Announcement Sun reported record fourth quarter revenues of $1.26 billion. For the fiscal year which ended June 30, 1993, Sun posted record revenues of $4.31 billion (up 20%). SunSoft shipped 140,000 Solaris(R) and UNIX(R) licenses, 117,000 of which were Solaris 2. SMCC shipped a record 71,000 systems and 92,000 SPARC processors during the quarter. ---------------------------------------------------------------------------- Investor contact: Rick Van Hoesen (415) 336-0117 Press contact: Chuck Mulloy (415) 336-6424 Industry Analyst contact: Tom Henkel (508) 442-0076 SUN MICROSYSTEMS FOURTH QUARTER NET INCOME DOUBLES ON 30 PERCENT HIGHER REVENUES MOUNTAIN VIEW, California -- July 28, 1993 -- Sun Microsystems, Inc., (NASDAQ:SUNW) today reported record fourth quarter revenues of $1.26 billion, up 30% from the $973 million reported for the corresponding period of fiscal 1992. Net income for the quarter ended June 30, 1993 more than doubled to a record $76.1 million, or $0.72 per share, compared to $37.7 million, or $0.37 per share, for the same period a year ago. For the fiscal year ended June 30, 1993, Sun posted record revenues of $4.31 billion, up 20% from the previous year. Net income for the year was $156.7 million, or $1.49 per share, compared to $173.3 million, or $1.71 per share, reported in the corresponding period a year ago. Kevin C. Melia, Sun's chief financial officer, said, "We are very pleased with these results. We are particularly pleased with our 30% year-over-year revenue growth in the fourth quarter given the difficult economic environment in Europe. Revenue growth in the U.S. and other geographies more than compensated for weak growth in European revenues." SunSoft, Inc., the company's system software subsidiary, distributed 140,000 Solaris(R) and UNIX(R) licenses, 117,000 of which were Solaris2. The company's computer systems subsidiary, Sun Microsystems Computer Corporation, shipped a record 71,000 systems and 92,000SPARC processors during the quarter. "In addition to our strong fourth quarter revenue growth, we achieved several important operational successes," said Melia. "We are realizing the benefits of the processes we initiated more than a year ago to control spending growth. Our revenues per employee grew 16% in the year, to a record $325 thousand. As a percentage of revenues, we reduced fourth quarter operating expenses more than 5-1/2 percentage points compared to the prior year, which more than offset the corresponding decline in gross profit margins. We have also continued our emphasis on asset management. Inventory turns and days sales outstanding both improved to record levels in fiscal 1993. And we achieved a cash balance of more than $1.1 billion even after repurchasing $200 million of Sun's common stock during the year." Melia concluded, "While weak economies in Europe and other international markets pose a significant challenge for our first fiscal quarter and could exacerbate the normal summer seasonal weakness, our product lines are in an excellent position. The performance of our high-end SPARC-based systems is now 50% faster than in the first quarter of fiscal 1993. We are the volume leader in multiprocessing-capable desktop systems, and we have an exciting new lineup of departmental and enterprise multiprocessing servers. And our recently announced graphics systems are the most competitive in our history. In short, all of our major systems and software products are now available in volume; we have a strong competitive lineup of SPARC systems running the Solaris operating environment, and Sun is being increasingly recognized as the solution of choice for commercial enterprise computing." # # # 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 about SunFlash 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. 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