---------------------------------------------------------------------------- The Florida SunFlash SUN MICROSYSTEMS REPORTS RECORD REVENUES FOR Q4 AND THE YEAR BREAKS $1 BILLION QUARTERLY BOOKINGS MARK SunFLASH Vol 44 #4 August 1992 ---------------------------------------------------------------------------- I have prepared a quick summary of Sun's fiscal performance for the last four years to put this article about Sun's most recent Fiscal year into context. (This data was extracted from previous Sun Press Releases.) Note that Sun's fiscal year starts July 1st and end June 30th. Fiscal Actual Revenues ( $ millions ) Revenue Growth (%) Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 FY 92 755 909 952 973 3,589 11.5 20.7 12.3 3.2 11.4 91 677 754 848 943 3,221 25.7 26.7 34.1 34.6 30.6 90 539 595 632 700 2,465 24.9 46.8 27.1 62.4 39.7 89 431 405 497 431 1,765 67.8 88 1,052 ---------------------------------------------------------------------------- MOUNTAIN VIEW, California -- August 5, 1992 -- Sun Microsystems, Inc., (NASDAQ: SUNW) today reported that revenues for its fourth fiscal quarter ended June 30, 1992 rose to a record level of $972.7 million, compared to the $942.5 million reported for the corresponding period of fiscal 1991. Net income for the fourth quarter was $37.7 million, or $0.37 per share, compared to $66.4 million, or $0.63 per share, for the same period a year ago. The company's computer systems subsidiary, Sun Microsystems Computer Corporation, shipped a record 56,000 revenue units. SunSoft, Inc., the company's operating system software subsidiary, distributed a record 78,000 UNIX licenses, demonstrating continued worldwide leadership in the UNIX marketplace. For the fiscal year ended June 30, 1992, Sun reported revenues of $3.6 billion, up from $3.2 billion in the prior year. Net income for the fiscal year was $173.3 million, or $1.71 per share, compared to $190.3 million, or $1.85 per share, in the previous fiscal year. Kevin C. Melia, Sun's chief financial officer, said, "We are pleased by our fourth quarter revenue and bookings performance during the current product transition period. At the time we announced the new SPARCstation10 products in May, we provided our customers with a product roadmap that took uncertainty out of their buying decisions during the transition period. The roadmap gives customers a clearly defined upgrade path, and provides them with a no-penalty upgrade option. In addition, we established a new price-performance curve with the new products that included substantial price reductions on our existing products. While the price reductions did reduce our gross margins, much of the margin impact was offset by improvements in our operating efficiencies. Customer response to the product introduction and roadmap was very favorable - demand for our products resulted in record bookings of over $1 billion, record revenues, and record hardware and software unit shipments." Melia continued, "Strong bookings and revenues gave us the confidence to implement a number of incremental investment programs ahead of our shipments of the new SPARCstation 10 family of products. The investments were primarily in targeted demand-creation programs and selective hiring in the sales and marketing functions. In addition, we are investing to accelerate certain R&D efforts. As a result, our operating expenses for the quarter were higher than previously experienced." "Our efficient operations and aggressive asset management resulted in continued strong balance sheet performance. Our inventories were at the lowest level in four years, we set new Sun records in inventory turns and days sales outstanding, and our cash portfolio rose to a record level of $1.2 billion," concluded Melia. 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. Analyst contact: Richard H. Van Hoesen (415) 336-0117 Press contact: Cindee Mock (415) 336-3563 ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 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, paris.cs.miami.edu, uunet.uu.net, 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. John McLaughlin, SunFlash editor, flash@sunvice.East.Sun.COM. (305) 776-7770.