---------------------------------------------------------------------------- The Florida SunFlash Sun Microsystems Announces Slightly Higher Earnings For First Fiscal Quarter SunFLASH Vol 35 #1 November 1991 ---------------------------------------------------------------------------- MOUNTAIN VIEW, Calif. -- October 23, 1991 -- Sun Microsystems, Inc. (SUNW), today reported that net income for its first quarter ended September 27, 1991 improved slightly to $26.8 million, or $0.27 per share, compared with $26.1 million, or $0.26 per share, for the corresponding period of fiscal 1991. Revenues for the quarter were $754.9 million, an 11% increase over the $677.0 million reported for the same period a year ago. Kevin C. Melia, Sun's chief financial officer, said, "Our fiscal 1992 first quarter results are at the low end of the range that management believed possible. As we stated in our previous two earnings releases, the seasonality prevalent in the computer industry is now a factor for Sun. In those releases, we cautioned against expecting sequential quarterly gains in revenues, net income or earnings per share, especially in the first quarter of each fiscal year. Our first quarter results demonstrate the effectiveness of our leveraged business model in dealing with the types of uncertainty inherent in the computer industry." Melia went on to state, "Our revenue per employee for the last 12 months improved, to $265,000, and is among the best in the industry. Our balance sheet and cash position remain strong, reflecting our continued emphasis on asset management, expense controls, and judicious and conservative hiring." The company believes that year-over-year comparisons are more indicative of the company's true performance, progress and position in the industry than are sequential quarterly comparisons. Melia added, "We continue to be cautious in our outlook for the remainder of the calendar year because of the overall volatility of the industry." Analyst contact: Thomas J. Meredith (415) 336-0245 Press contact: Cindee Mock (415) 336-3563 Sun Microsystems, Inc., is one of the world's leading suppliers of client-server computing solutions that feature networked workstations and servers that store, process and distribute information. According to analysts, Sun's products command the largest share of one of the computer industry's fastest growing market segments: workstations and servers. The company was founded in 1982 and is headquartered in Mountain View, California. ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 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.