---------------------------------------------------------------------------- The Florida SunFlash Sun Microsystems Announces Record Fourth Quarter And Annual Results SunFLASH Vol 32 #8 August 1991 ---------------------------------------------------------------------------- MOUNTAIN VIEW, Calif. -- August 8, 1991 -- Sun Microsystems, Inc. (SUNW), today reported significant year-to-year improvements in its operating results and financial position for the fiscal year ended June 30, 1991. For fiscal year 1991, revenues were $3.221 billion, up 31% from the $2.466 billion reported in fiscal year 1990. Net income for fiscal year 1991 increased more than 70% to $190.3 million, or $1.85 per share, from the $111.2 million, or $1.21 per share, of fiscal year 1990. Revenues for the fourth quarter were $942.5 million, a 35% increase over the $700.1 million reported in the same period a year ago. Net income for the quarter also increased 35% to $66.4 million, or $0.63 per share, from the $49.1 million, or $0.51 per share, for the corresponding period a year ago. Kevin C. Melia, Sun's chief financial officer, said, "It was an excellent quarter for us in all material respects. We reported record revenues, bookings and earnings, and we ended the year with $834 million in our cash portfolio and a balance sheet that has never been stronger. We enjoyed considerable success in our three major geographies -- the United States, Europe and the Pacific Rim." Commenting on the company's financial results, Melia said, "Our operating margin in the fourth quarter reached 10.7%, the second consecutive quarter it's been above the 10% mark, and its highest in three years. Net income of about $66 million was 7% of revenues, also at the high end of our historical range. Clearly, employees throughout the company have responded aggressively to our calls for improved asset management, expense controls, and judicious and conservative hiring. As a result, our revenue per employee increased more than 20% in the past year, to $258,000. Furthermore, we shipped a record 49,000 units in the quarter, with the SPARCstation(TM) 2 accounting for the largest portion." Sun reminds investors that as the company has grown and become increasingly global in nature, the seasonality prevalent in the computer industry is now a factor for Sun as well. For this reason, the company cautions against expecting sequential quarterly gains in revenues, net income or earnings per share, especially in the first quarter (ending September) of any fiscal year. Because of this seasonal pattern, the company believes that year- over- year comparisons are more indicative of the company's true performance, progress, and position in the industry. Melia added, "Given this seasonality and the overall volatility of the industry at this time, we remain cautious in our outlook for the first half of this fiscal year." Sun Microsystems, Inc. is the world's leading supplier of client/server computing solutions, which feature networked workstations and servers that store, process, and distribute information. Used for many demanding commercial and technical applications, Sun products command the largest share of the computer industry's fastest growing market segment: workstations and servers. Founded in 1982 and headquartered in Mountain View, California, Sun is a multibillion dollar corporation doing business worldwide. ### UNIX is a registered trademark of UNIX System Laboratories, Inc. OPEN LOOK is a registered trademark of American Telephone and Telegraph Company. SPARC is a registered trademark of SPARC International, Inc. Products bearing the SPARC trademark are based on an architecture developed by Sun Microsystems, Inc. SPARCstation is a trademark of SPARC International, Inc., licensed exclusively to Sun Microsystems, Inc. ONC is a trademark of Sun Microsystems, Inc. PR contact: Cindee Mock (415) 336-3563 Analyst contact: Thomas J. Meredith (415) 336-0245 ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ For information send mail to info-sunflash@sunvice.East.Sun.COM. Subscription requests should be sent to sunflash-request@sunvice.East.Sun.COM. Archives are on solar.nova.edu and paris.cs.miami.edu. 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. John McLaughlin, SunFlash editor, flash@sunvice.East.Sun.COM. (305) 776-7770.