sunflash-Distributed to mailing list sun/NC/north-carolina sunflash-Send requests, problems to owner-sunflash@suntri.east.sun.com ---------------------------------------------------------------------------- The Florida SunFlash Sun Announces First Quarter Earnings SunFLASH Vol 58 #14 October 1993 ---------------------------------------------------------------------------- Investor contact: Richard H. Van Hoesen (415) 336-0117 Press contact: Chuck Mulloy (415) 336-6424 Industry analyst contact: Tom Henkel (508) 442-0076 SUN MICROSYSTEMS REPORTS IMPROVED FIRST QUARTER RESULTS MOUNTAIN VIEW, California -- October 14, 1993 -- Sun Microsystems, Inc., (NASDAQ: SUNW) today reported record first-quarter revenues of $960.5 million, up approximately 12% from the $855.9 million reported for the corresponding period of fiscal 1993. Net income for the first quarter was $16.6 million, or $0.16 per share, compared to $4.8 million, or $0.05 per share, for the same period a year ago. Net income for the period includes a one-time credit of approximately $6 million resulting from recently enacted 1993 U.S. tax legislation. Kevin C. Melia, Sun's chief financial officer, said, "The strength and breadth of our product line, and our continued focus on improving the business model and cost structure were apparent in the quarter. These strengths, along with strong growth in the U.S. and the rest of the world, mitigated continued weakness in several European economies and the normal first quarter summer seasonality." "Our continued focus on the business model has helped us improve employee productivity to record levels," Melia said. "Over the last year, revenue per employee has grown nearly 22 percent, to $348,000. Perhaps more importantly, for the fourth consecutive quarter we have driven down our operating expenses as a percentage of revenues compared with the year-ago period. And for the second consecutive quarter this decrease in expenses more than offset the expected decline in the gross margin percentage, and enabled us to again grow operating income faster than revenues." "Our asset and balance sheet management are excellent," Melia continued, "Inventory turns, at 10.2, continue among the highest in our industry, and our ability to deliver quality products within days of the order is a competitive advantage. The strength of our balance sheet and cash flow enabled us to announce a ten million share stock buyback program in June. Since that time we have repurchased approximately 7.5 million shares on the open market, and we still have more than $900 million in cash on the balance sheet." SUN MICROSYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENT OF INCOME (In thousands, except per share amounts) Three Months Ended (Unaudited) ----------------------------------------------------------------- September 26, September 25, 1993 1992 ----------------------------------------------------------------- Net revenues $ 960,481 $ 855,939 Costs and expenses: Cost of sales 567,973 488,305 Research and development 107,898 105,490 Selling, general and administrative 269,070 253,273 ----------------------------------------------------------------- Total costs and expenses 944,941 847,068 ----------------------------------------------------------------- Operating income 15,540 8,871 Interest income (expense), net 590 (1,767) ----------------------------------------------------------------- Income before income taxes 16,130 7,104 Provision (credit) for income taxes (476) 2,273 ----------------------------------------------------------------- Net income $16,606 $ 4,831 ================================================================= Net income per common and common-equivalent share $ 0.16 $ 0.05 ================================================================= Common and common-equivalent shares used in the calculation of net income per share 100,976 101,147 ================================================================= SUN MICROSYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) ASSETS September 26, 1993 June 30, (unaudited) 1993 ----------------------------------------------------------------- Current assets: Cash, cash equivalents and short-term investments $ 901,572 $ 1,138,712 Accounts receivable, net 652,078 627,174 Inventories 281,891 256,275 Other current assets 243,596 250,185 ----------------------------------------------------------------- Total current assets 2,079,137 2,272,346 Property, plant and equipment, net 349,813 348,382 Other assets, net 145,152 146,901 ----------------------------------------------------------------- $ 2,574,102 $ 2,767,629 ================================================================= LIABILITIES AND STOCKHOLDERS' EQUITY ----------------------------------------------------------------- Current liabilities: Short-term borrowings $ 83,714 $ 90,890 Accounts payable 256,181 270,440 Accrued liabilities 409,654 393,264 Income taxes payable 65,672 92,930 Other current liabilities 95,808 99,520 ----------------------------------------------------------------- Total current liabilities 911,029 947,044 Long-term debt and other obligations 158,272 177,802 Stockholders' equity 1,504,801 1,642,783 ----------------------------------------------------------------- $ 2,574,102 $ 2,767,629 ================================================================= ********************************************************************** 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 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