sunflash-Distributed to mailing list sun/NC/north-carolina sunflash-Send requests, problems to owner-sunflash@suntri.east.sun.com ---------------------------------------------------------------------------- The Florida SunFlash Sun's 2nd Quarter, Fiscal Year Results SunFLASH Vol 61 #21 January 1994 ---------------------------------------------------------------------------- 61.21 Sun's 2nd Quarter, Fiscal Year Results Q2 revenues: $1,131 million (+8%) Q2 net income: $ 43.8 million, or $0.46 per share Q1+Q2 revenues: $2,091 million, up 10% from the same period a year earlier (105 lines) ---------------------------------------------------------------------------- Investor contact: Richard H. Van Hoesen (415) 336-0117 Press contact: Chuck Mulloy (415) 336-6424 Analyst contact: Tom Henkel (508) 442-0076 SUN MICROSYSTEMS EARNINGS UP SHARPLY; BOOKINGS AT ALL-TIME HIGH MOUNTAIN VIEW, California -- January 18, 1994-- Sun Microsystems, Inc., (NASDAQ: SUNW) today reported second-quarter revenues of $1,131 million, up approximately 8 percent from the $1,051 million reported for the corresponding period of fiscal 1993. Net income for the second quarter was $43.8 million, or $0.46 per share, compared with $24.1 million, or $0.23 per share, for the same period a year ago. For the first six months of fiscal 1994, Sun recorded revenues of $2,091 million, up 10% from the same period a year earlier. Net income for the six-month period was $60.4 million, or $0.62 per share, compared with $28.9 million, or $0.28 per share, reported in the corresponding period a year ago. Kevin C. Melia, Sun's chief financial officer, said, "We are very pleased with the results of the quarter. Our focus on earnings and the quality of our products is paying off with high demand and earnings growth. Sun's successful new product offerings and the resulting strength in the high-end product mix, as well as our continued focus on cost management, helped increase gross margins from last year's level. We also reduced operating expenses as a percent of revenues compared with the prior year for the fifth consecutive quarter. As a result, operating income grew 27% compared with the prior year. In addition, bookings were strong and grew to a new record, with the SPARCserver 1000 and SPARCcenter 2000 servers and ZX and SX high-performance graphics products leading the way. The backlog for these products has grown significantly as they have really taken hold in the marketplace." "Our asset and balance sheet management continue to produce excellent results." Melia continued, "Inventory turns, at 10.8, remain among the highest in our industry. The strength of our balance sheet and cash flow enabled us to complete the ten million share stock buyback program announced in June. We have now repurchased more than 17 million shares since July of 1992. As a result, earnings per share grew even more quickly than operating income." Melia concluded, "Our strong system and software product lines helped us again improve product mix in the quarter. We had several important wins in the commercial marketplace with our desktop systems and SPARCserver 1000 and SPARCcenter 2000 server products. And our new high-performance ZX and SX graphics systems have met with excellent success in demanding technical applications. Our Solaris software operating environment is a key element of our improved demand, and we have made excellent progress in the move to Solaris 2, with nearly 2000 applications now available from independent software vendors. We are now shipping version 2.3 of Solaris, which contains high performance networking, 20-way multiprocessing, system administration, database performance and other features that make it the most powerful open software solution for enterprise customers. The combination of our systems, software and service offerings is making Sun the solution of choice for enterprise customers worldwide." # # # 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. 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 draco.nova.edu, ftp.uu.net, sunsite.unc.edu, src.doc.ic.ac.uk and ftp.adelaide.edu.au For last month's digest, send email to flashadm@sun.com with a Subject line of 60.00 For Gopher and WAIS access: sunsite.unc.edu. (Login as 'gopher' for a simple gopher client, 'swais' for a simple WAIS client (over 500 databases). 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