---------------------------------------------------------------------------- The Florida SunFlash Sun Microsystems Second Quarter Net Income SunFLASH Vol 26 #8 February 1991 ---------------------------------------------------------------------------- Nearly Doubles on 27% Revenue Gain MOUNTAIN VIEW, Calif. --January 24, 1991-- Sun Microsystems, Inc. (SUNW) today reported record revenues for both the three and six month periods ended December 28, 1990. For the second quarter, Sun reported revenues of $753 million, a 27% increase over the $595 million reported in the same period a year ago. Net income in the quarter was $39.1 million, or $0.39 per share, nearly twice the net income of $20.2 million, or $0.23 per share, reported in the corresponding period a year ago. For the first six months of fiscal 1991, Sun recorded revenues of $1,431 million, up 26% from the same period a year earlier. Net income more than doubled to $65.2 million, or $0.65 per share, from the $25.4 million, or $0.30 per share, reported in the corresponding period a year ago. During both the second quarter and first six months of fiscal 1991, about half of Sun's net revenues were derived from outside the U.S.; the strength of foreign currencies relative to the U.S. dollar contributed to both net revenues and net income. Scott McNealy, chairman, president and CEO of Sun said, "At the halfway point of fiscal 1991, we remain cautiously pleased with the trends evident in our business. Our momentum in the marketplace has helped us overcome the economic and product uncertainty of the last several quarters. Sun employees worldwide took our cost-control message to heart, which allowed us to hold spending and headcount growth below the revenue growth in the second quarter, thereby increasing profitability. Moreover, our balance sheet is in its best shape in several years. "We shipped a record 44,000 systems in the second quarter, nearly half of them outside the U.S. Furthermore, we recently learned that as a result of our strong performance in calendar 1990, Sun once again increased its lead over competitors in the worldwide workstation marketplace, according to two leading market research organizations that recently released their preliminary market share estimates for 1990. "In keeping with Sun's history of aggressive new product introductions, we introduced in November our highest performance desktop workstation to date, SPARCstation(TM) 2. In the seven weeks between its introduction and the end of the second quarter, Sun shipped more than 9000 SPARCstation 2's, by far a record `ramp-up.' Early customer reports from the field show this to be our most reliable product to date," McNealy said. "Obvious external factors could affect the demand for our products in the coming months. Nevertheless, the success of our new products, our leading market share position, Sun's excellent financial condition with more than $500 million in cash, and the continued support of our customers around the world give us considerable confidence as we face the remaining quarters of fiscal 1991. Sun Microsystems, Inc., headquartered in Mountain View, Calif., is a leading worldwide supplier of network-based distributed computing systems, including professional workstations, servers and UNIX operating system and productivity software. ### UNIX is a registered trademark of UNIX System Laboratories, Inc. SPARCstation is a trademark of SPARC International, Inc., licensed exclusively to Sun Microsystems, Inc. Products bearing SPARC trade- marks are based on an architecture developed by Sun Microsystems, Inc. All other products mentioned herein are identified by the trademarks as designated by the companies who market those products. Investor Relations contact Austin Wing Mayer (415) 336-0699 ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 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.