Exhibit 99.1
INVESTOR CONTACT: Jeff Boldt (650) 786-0333 jeff.boldt@sun.com | |
MEDIA CONTACT: May Goh Petry (650) 786-0034 may.petry@sun.com | |
INDUSTRY ANALYST CONTACT: Joanne Masters (650) 786-0847 joanne.masters@sun.com |
SUN MICROSYSTEMS REPORTS FISCAL THIRD QUARTER RESULTS
SANTA CLARA, Calif. — April 15, 2004 — Sun Microsystems, Inc. (NASDAQ: SUNW), a leader in systems and solutions that make the Net work, reported results today for its fiscal 2004 third quarter, which ended March 28, 2004. The results reported today for revenue and earnings per share are within the ranges provided in the company’s financial press release of April 2nd 2004.
Revenues for the third quarter of fiscal 2004 were $2.651 billion, a sequential decrease of 8.2 percent and a year-over-year decline of 5.0 percent as compared with $2.790 billion for the third quarter of fiscal 2003. Total gross margin for the quarter as a percent of revenues was 40.3 percent, a decrease of 1.5 percentage points sequentially and a decrease of 4.3 percentage points as compared with the third quarter of fiscal 2003. Net loss for the quarter was $760 million or $0.23 per share as compared with net income of $4 million or $0.00 per share for the third quarter of fiscal 2003. This loss includes a non-cash charge of $300 million for an increase in the valuation allowance for deferred tax assets, a charge of $203 million for workforce and real estate restructuring, and a gain of $3 million on equity investments. Excluding these amounts, net loss for the quarter on a non-GAAP basis would have been $260 million or a net loss per share of $0.08.
Sun has scheduled a conference call today to discuss its earnings for the third quarter of fiscal year 2004 at 2:30 p.m. (PT), which is being broadcast live at www.sun.com/investors.
About Sun Microsystems, Inc.
Sun, Sun Microsystems, the Sun logo, and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and in other countries.
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions, except per share amounts)
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, 2004 | March 30, 2003 | March 28, 2004 | March 30,2003 | |||||||||||||
Net revenues: | ||||||||||||||||
Products | $ | 1,711 | $ | 1,897 | $ | 5,289 | $ | 5,790 | ||||||||
Services | 940 | 893 | 2,786 | 2,662 | ||||||||||||
Total net revenues | 2,651 | 2,790 | 8,075 | 8,452 | ||||||||||||
Cost of sales: | ||||||||||||||||
Cost of sales—products | 980 | 1,021 | 3,052 | 3,232 | ||||||||||||
Cost of sales—services | 603 | 526 | 1,731 | 1,582 | ||||||||||||
Total cost of sales | 1,583 | 1,547 | 4,783 | 4,814 | ||||||||||||
Gross margin | 1,068 | 1,243 | 3,292 | 3,638 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 470 | 467 | 1,408 | 1,355 | ||||||||||||
Selling, general and administrative | 842 | 791 | 2,468 | 2,503 | ||||||||||||
Restructuring charges | 203 | (4 | ) | 194 | 377 | |||||||||||
Purchased in-process research and development | — | — | 1 | 4 | ||||||||||||
Impairment of goodwill and other intangible assets | — | — | — | 2,125 | ||||||||||||
Total operating expenses | 1,515 | 1,254 | 4,071 | 6,364 | ||||||||||||
Operating loss | (447 | ) | (11 | ) | (779 | ) | (2,726 | ) | ||||||||
Gain (loss) on equity investments, net | 3 | (16 | ) | (58 | ) | (58 | ) | |||||||||
Interest income, net | 23 | 33 | 64 | 110 | ||||||||||||
Income (loss) before income taxes | (421 | ) | 6 | (773 | ) | (2,674 | ) | |||||||||
Provision (benefit) for income taxes | 339 | 2 | 398 | (284 | ) | |||||||||||
Net income (loss) | $ | (760 | ) | $ | 4 | $ | (1,171 | ) | $ | (2,390 | ) | |||||
Net income (loss) per common share—basic and diluted | $ | (0.23 | ) | $ | — | $ | (0.36 | ) | $ | (0.75 | ) | |||||
Shares used in the calculation of net income (loss) per common share — basic | 3,286 | 3,193 | 3,261 | 3,181 | ||||||||||||
Shares used in the calculation of net income (loss) per common share — diluted | 3,286 | 3,218 | 3,261 | 3,181 | ||||||||||||
Calculation of net income (loss) excluding special items: | ||||||||||||||||
Net income (loss) per above | $ | (760 | ) | $ | 4 | $ | (1,171 | ) | $ | (2,390 | ) | |||||
Restructuring charges | 203 | (4 | ) | 194 | 377 | |||||||||||
Purchased in-process research and development | — | — | 1 | 4 | ||||||||||||
(Gain) loss on equity investments, net | (3 | ) | 16 | 58 | 58 | |||||||||||
Impairment of goodwill and other intangible assets | — | — | — | 2,125 | ||||||||||||
Valuation allowance on deferred tax assets | 300 | — | 300 | — | ||||||||||||
Related tax effects | — | (5 | ) | — | (231 | ) | ||||||||||
Net income (loss) excluding special items | $ | (260 | ) | $ | 11 | $ | (618 | ) | $ | (57 | ) | |||||
Net income (loss) excluding special items per common share — basic and diluted | $ | (0.08 | ) | $ | — | $ | (0.19 | ) | $ | (0.02 | ) | |||||
Shares used in the calculation of net income (loss) excluding special items per common share — basic | 3,286 | 3,193 | 3,261 | 3,181 | ||||||||||||
Shares used in the calculation of net income (loss) excluding special items per common share — diluted | 3,286 | 3,218 | 3,261 | 3,181 | ||||||||||||
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
March 28, 2004 | June 30, 2003* | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,506 | $ | 2,015 | ||||
Short-term marketable debt securities | 866 | 1,047 | ||||||
Accounts receivable, net | 2,201 | 2,381 | ||||||
Inventories | 497 | 416 | ||||||
Deferred and prepaid tax assets | 424 | 133 | ||||||
Prepaid expenses and other current assets | 822 | 787 | ||||||
Total current assets | 6,316 | 6,779 | ||||||
Property, plant and equipment, net | 2,075 | 2,267 | ||||||
Long-term marketable debt securities | 3,111 | 2,679 | ||||||
Goodwill | 470 | 326 | ||||||
Other acquisition-related intangible assets, net | 119 | 91 | ||||||
Other non-current assets, net | 692 | 843 | ||||||
$ | 12,783 | $ | 12,985 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt and short-term borrowings | $ | 257 | $ | — | ||||
Accounts payable | 1,011 | 903 | ||||||
Accrued payroll-related liabilities | 584 | 479 | ||||||
Accrued liabilities and other | 1,053 | 1,027 | ||||||
Deferred revenues | 1,342 | 1,453 | ||||||
Warranty reserve | 247 | 267 | ||||||
Total current liabilities | 4,494 | 4,129 | ||||||
Long-term debt | 1,209 | 1,531 | ||||||
Long-term deferred revenues | 537 | 450 | ||||||
Other non-current obligations | 990 | 384 | ||||||
Total stockholders’ equity | 5,553 | 6,491 | ||||||
$ | 12,783 | $ | 12,985 | |||||
* | Derived from audited financial statements |
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Nine Months Ended | ||||||||
March 28, 2004 | March 30, 2003 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (1,171 | ) | $ | (2,390 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 517 | 676 | ||||||
Amortization of other intangible assets and unearned equity compensation | 65 | 87 | ||||||
Impairment of goodwill and other intangible assets | — | 2,125 | ||||||
Tax benefits from employee stock plans | — | 9 | ||||||
Deferred taxes | 300 | (284 | ) | |||||
Loss on equity investments, net | 58 | 58 | ||||||
Purchased in-process research and development | 1 | 4 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | 202 | 468 | ||||||
Inventories | (77 | ) | 206 | |||||
Prepaid and other assets | (18 | ) | 171 | |||||
Accounts payable | 113 | (168 | ) | |||||
Other liabilities | 64 | (260 | ) | |||||
Net cash provided by operating activities | 54 | 702 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of marketable debt securities | (6,649 | ) | (4,643 | ) | ||||
Proceeds from sales of marketable debt securities | 6,374 | 4,219 | ||||||
Proceeds from maturities of marketable debt securities | — | 564 | ||||||
Proceeds from (purchases of) equity investments, net | 14 | (15 | ) | |||||
Acquisition of property, plant and equipment, net | (189 | ) | (238 | ) | ||||
Acquisition of spare parts and other assets | (56 | ) | (132 | ) | ||||
Payments for acquisitions, net of cash acquired | (201 | ) | (30 | ) | ||||
Net cash used in investing activities | (707 | ) | (275 | ) | ||||
Cash flows from financing activities: | ||||||||
Acquisition of common stock | — | (499 | ) | |||||
Proceeds from issuance of common stock, net | 151 | 87 | ||||||
Principal payments on borrowings and other obligations | (7 | ) | (201 | ) | ||||
Net cash provided by (used in) financing activities | 144 | (613 | ) | |||||
Net decrease in cash and cash equivalents | (509 | ) | (186 | ) | ||||
Cash and cash equivalents, beginning of period | 2,015 | 2,024 | ||||||
Cash and cash equivalents, end of period | $ | 1,506 | $ | 1,838 | ||||
SUN MICROSYSTEMS, INC.
OPERATIONS ANALYSIS — CONSOLIDATED (UNAUDITED)
STATEMENTS OF OPERATIONS | FY 2004 | FY 2003 | FY 2002 | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions except per share amounts) | Q1 | Q2 | Q3 | FY04 YTD | Q1 | Q2 | Q3 | Q4 | FY03 | Q3 | Q4 | FY02 | ||||||||||||||||||||||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Products | 1,634 | 1,944 | 1,711 | 5,289 | 1,880 | 2,013 | 1,897 | 2,003 | 7,793 | 2,269 | 2,507 | 9,093 | ||||||||||||||||||||||||||||||||||||||||
Services | 902 | 944 | 940 | 2,786 | 867 | 902 | 893 | 979 | 3,641 | 838 | 913 | 3,403 | ||||||||||||||||||||||||||||||||||||||||
TOTAL | 2,536 | 2,888 | 2,651 | 8,075 | 2,747 | 2,915 | 2,790 | 2,982 | 11,434 | 3,107 | 3,420 | 12,496 | ||||||||||||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -7.7 | % | -0.9 | % | -5.0 | % | -4.5 | % | -4.0 | % | -6.2 | % | -10.2 | % | -12.8 | % | -8.5 | % | -24.1 | % | -14.4 | % | -31.5 | % | ||||||||||||||||||||||||||||
Growth vs. prior quarter (%) | -15.0 | % | 13.9 | % | -8.2 | % | -19.7 | % | 6.1 | % | -4.3 | % | 6.9 | % | 0.0 | % | 10.1 | % | ||||||||||||||||||||||||||||||||||
COST OF SALES | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Products | 965 | 1,107 | 980 | 3,052 | 1,093 | 1,118 | 1,021 | 1,110 | 4,342 | 1,306 | 1,476 | 5,506 | ||||||||||||||||||||||||||||||||||||||||
Services | 555 | 573 | 603 | 1,731 | 522 | 534 | 526 | 568 | 2,150 | 494 | 530 | 2,074 | ||||||||||||||||||||||||||||||||||||||||
TOTAL | 1,520 | 1,680 | 1,583 | 4,783 | 1,615 | 1,652 | 1,547 | 1,678 | 6,492 | 1,800 | 2,006 | 7,580 | ||||||||||||||||||||||||||||||||||||||||
% of revenue | 59.9 | % | 58.2 | % | 59.7 | % | 59.2 | % | 58.8 | % | 56.7 | % | 55.4 | % | 56.3 | % | 56.8 | % | 57.9 | % | 58.7 | % | 60.7 | % | ||||||||||||||||||||||||||||
GROSS MARGIN ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Products | 669 | 837 | 731 | 2,237 | 787 | 895 | 876 | 893 | 3,451 | 963 | 1,031 | 3,587 | ||||||||||||||||||||||||||||||||||||||||
% of product revenue | 40.9 | % | 43.1 | % | 42.7 | % | 42.3 | % | 41.9 | % | 44.5 | % | 46.2 | % | 44.6 | % | 44.3 | % | 42.4 | % | 41.1 | % | 39.4 | % | ||||||||||||||||||||||||||||
Services | 347 | 371 | 337 | 1,055 | 345 | 368 | 367 | 411 | 1,491 | 344 | 383 | 1,329 | ||||||||||||||||||||||||||||||||||||||||
% of service revenue | 38.5 | % | 39.3 | % | 35.9 | % | 37.9 | % | 39.8 | % | 40.8 | % | 41.1 | % | 42.0 | % | 41.0 | % | 41.1 | % | 41.9 | % | 39.1 | % | ||||||||||||||||||||||||||||
TOTAL | 1,016 | 1,208 | 1,068 | 3,292 | 1,132 | 1,263 | 1,243 | 1,304 | 4,942 | 1,307 | 1,414 | 4,916 | ||||||||||||||||||||||||||||||||||||||||
% of revenue | 40.1 | % | 41.8 | % | 40.3 | % | 40.8 | % | 41.2 | % | 43.3 | % | 44.6 | % | 43.7 | % | 43.2 | % | 42.1 | % | 41.3 | % | 39.3 | % | ||||||||||||||||||||||||||||
R&D | 467 | 471 | 470 | 1,408 | 437 | 451 | 467 | 482 | 1,837 | 468 | 463 | 1,832 | ||||||||||||||||||||||||||||||||||||||||
% of revenue | 18.4 | % | 16.3 | % | 17.7 | % | 17.4 | % | 15.9 | % | 15.5 | % | 16.7 | % | 16.2 | % | 16.1 | % | 15.1 | % | 13.5 | % | 14.7 | % | ||||||||||||||||||||||||||||
PURCHASED IN PROCESS R&D | 1 | 0 | 0 | 1 | 0 | 4 | 0 | 0 | 4 | 0 | 0 | 3 | ||||||||||||||||||||||||||||||||||||||||
% of revenue | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||||||||||
SG&A | 798 | 828 | 842 | 2,468 | 882 | 830 | 791 | 826 | 3,329 | 985 | 894 | 3,806 | ||||||||||||||||||||||||||||||||||||||||
% of revenue | 31.5 | % | 28.7 | % | 31.8 | % | 30.6 | % | 32.1 | % | 28.5 | % | 28.4 | % | 27.7 | % | 29.1 | % | 31.7 | % | 26.1 | % | 30.5 | % | ||||||||||||||||||||||||||||
RESTRUCTURING CHARGES | 1 | (10 | ) | 203 | 194 | 24 | 357 | (4 | ) | (6 | ) | 371 | (4 | ) | (4 | ) | 517 | |||||||||||||||||||||||||||||||||||
% of revenue | 0.0 | % | -0.3 | % | 7.7 | % | 2.4 | % | 0.9 | % | 12.2 | % | -0.1 | % | -0.2 | % | 3.2 | % | -0.1 | % | -0.1 | % | 4.1 | % | ||||||||||||||||||||||||||||
IMPAIRMENT EXPENSE | 0 | 0 | 0 | 0 | 0 | 2,125 | 0 | 0 | 2,125 | 6 | 0 | 6 | ||||||||||||||||||||||||||||||||||||||||
% of revenue | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 72.9 | % | 0.0 | % | 0.0 | % | 18.6 | % | 0.2 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||||||||||
TOTAL OPERATING EXPENSES | 1,267 | 1,289 | 1,515 | 4,071 | 1,343 | 3,767 | 1,254 | 1,302 | 7,666 | 1,455 | 1,353 | 6,164 | ||||||||||||||||||||||||||||||||||||||||
% of revenue | 50.0 | % | 44.6 | % | 57.1 | % | 50.4 | % | 48.9 | % | 129.2 | % | 44.9 | % | 43.7 | % | 67.0 | % | 46.8 | % | 39.6 | % | 49.3 | % | ||||||||||||||||||||||||||||
OPERATING INCOME (LOSS) | (251 | ) | (81 | ) | (447 | ) | (779 | ) | (211 | ) | (2,504 | ) | (11 | ) | 2 | (2,724 | ) | (148 | ) | 61 | (1,248 | ) | ||||||||||||||||||||||||||||||
Operating margin | -9.9 | % | -2.8 | % | -16.9 | % | -9.6 | % | -7.7 | % | -85.9 | % | -0.4 | % | 0.1 | % | -23.8 | % | -4.8 | % | 1.8 | % | -10.0 | % | ||||||||||||||||||||||||||||
Interest income, net | 21 | 20 | 23 | 64 | 39 | 38 | 33 | 45 | 155 | 77 | 47 | 299 | ||||||||||||||||||||||||||||||||||||||||
Gain (loss) on equity investments, net | (25 | ) | (36 | ) | 3 | (58 | ) | (31 | ) | (11 | ) | (16 | ) | (26 | ) | (84 | ) | (23 | ) | (18 | ) | (99 | ) | |||||||||||||||||||||||||||||
PRETAX INCOME (LOSS) | (255 | ) | (97 | ) | (421 | ) | (773 | ) | (203 | ) | (2,477 | ) | 6 | 21 | (2,653 | ) | (94 | ) | 90 | (1,048 | ) | |||||||||||||||||||||||||||||||
Pretax income (loss) margin | -10.1 | % | -3.4 | % | -15.9 | % | -9.6 | % | -7.4 | % | -85.0 | % | 0.2 | % | 0.7 | % | -23.2 | % | -3.0 | % | 2.6 | % | -8.4 | % | ||||||||||||||||||||||||||||
INCOME TAX PROVISION (BENEFIT) | 31 | 28 | 339 | 398 | (92 | ) | (194 | ) | 2 | 1,060 | 776 | (57 | ) | 29 | (461 | ) | ||||||||||||||||||||||||||||||||||||
TAX RATE (%) | N/A | N/A | N/A | N/A | 45.5 | % | 7.8 | % | 44.0 | % | N/A | N/A | 60.8 | % | 11.3 | % | 44.0 | % | ||||||||||||||||||||||||||||||||||
NET INCOME (LOSS) (Reported) | (286 | ) | (125 | ) | (760 | ) | (1,171 | ) | (111 | ) | (2,283 | ) | 4 | (1,039 | ) | (3,429 | ) | (37 | ) | 61 | (587 | ) | ||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -157.7 | % | 94.5 | % | -19100.0 | % | 51.0 | % | 38.3 | % | -429.7 | % | 110.8 | % | -1803.3 | % | -484.2 | % | -127.2 | % | 169.3 | % | -163.3 | % | ||||||||||||||||||||||||||||
Growth vs. prior quarter (%) | 72.5 | % | 56.3 | % | -508.0 | % | -282.0 | % | -1956.8 | % | 100.2 | % | -26075.0 | % | 91.4 | % | 264.9 | % | ||||||||||||||||||||||||||||||||||
Net income (loss) margin | -11.3 | % | -4.3 | % | -28.7 | % | -14.5 | % | -4.0 | % | -78.3 | % | 0.1 | % | -34.8 | % | -30.0 | % | -1.2 | % | 1.8 | % | -4.7 | % | ||||||||||||||||||||||||||||
EPS (Diluted) (Reported) | (0.09 | ) | (0.04 | ) | (0.23 | ) | (0.36 | ) | (0.04 | ) | (0.72 | ) | 0.00 | (0.32 | ) | (1.07 | ) | (0.01 | ) | 0.02 | (0.18 | ) | ||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -125.0 | % | 94.4 | % | N/A | 52.0 | % | 33.3 | % | -453.8 | % | 100.0 | % | -1700.0 | % | -494.4 | % | -125.0 | % | 166.7 | % | -166.7 | % | |||||||||||||||||||||||||||||
Growth vs. prior quarter (%) | 71.9 | % | 55.6 | % | -475.0 | % | -300.0 | % | -1700.0 | % | 100.0 | % | N/A | 92.3 | % | 300.0 | % | |||||||||||||||||||||||||||||||||||
SHARES (CSE)(Diluted) | 3,235 | 3,262 | 3,286 | 3,261 | 3,168 | 3,181 | 3,218 | 3,219 | 3,190 | 3,245 | 3,309 | 3,242 | ||||||||||||||||||||||||||||||||||||||||
OUTSTANDING SHARES | 3,240 | 3,280 | 3,293 | 3,293 | 3,116 | 3,194 | 3,200 | 3,236 | 3,236 | 3,245 | 3,234 | 3,234 | ||||||||||||||||||||||||||||||||||||||||
GAAP net income (loss) | (286 | ) | (125 | ) | (760 | ) | (1,171 | ) | (111 | ) | (2,283 | ) | 4 | (1,039 | ) | (3,429 | ) | (37 | ) | 61 | (587 | ) | ||||||||||||||||||||||||||||||
In-process research and development | 1 | 0 | 0 | 1 | 0 | 4 | 0 | 0 | 4 | 0 | 0 | 3 | ||||||||||||||||||||||||||||||||||||||||
Restructuring charges | 1 | (10 | ) | 203 | 194 | 24 | 357 | (4 | ) | (6 | ) | 371 | (4 | ) | (4 | ) | 517 | |||||||||||||||||||||||||||||||||||
Gain (loss) on equity investments, net | 25 | 36 | (3 | ) | 58 | 31 | 11 | 16 | 26 | 84 | 23 | 18 | 99 | |||||||||||||||||||||||||||||||||||||||
Impairment expense | 0 | 0 | 0 | 0 | 0 | 2,125 | 0 | 0 | 2,125 | 6 | 0 | 6 | ||||||||||||||||||||||||||||||||||||||||
Valuation allowance on deferred tax assets | 0 | 0 | 300 | 300 | 0 | 0 | 0 | 1,051 | 1,051 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Related tax effects | 0 | 0 | 0 | 0 | (22 | ) | (204 | ) | (5 | ) | (8 | ) | (239 | ) | (8 | ) | (6 | ) | (246 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) excluding special items | (259 | ) | (99 | ) | (260 | ) | (618 | ) | (78 | ) | 10 | 11 | 24 | (33 | ) | (20 | ) | 69 | (208 | ) | ||||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -232.1 | % | -1090.0 | % | -2463.6 | % | -984.2 | % | 50.6 | % | 110.1 | % | 155.0 | % | -65.2 | % | 84.1 | % | -113.8 | % | 527.3 | % | -118.8 | % | ||||||||||||||||||||||||||||
EPS (Diluted) excluding special items* | (0.08 | ) | (0.03 | ) | (0.08 | ) | (0.19 | ) | (0.02 | ) | 0.00 | 0.00 | 0.01 | (0.01 | ) | (0.01 | ) | 0.02 | (0.06 | ) | ||||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -300.0 | % | N/A | N/A | -850.00 | % | 60.0 | % | 100.0 | % | 100.0 | % | -50.0 | % | 83.3 | % | -125.0 | % | N/A | -118.8 | % |
* | For the quarters ended June 30, 2003 and December 29, 2002, Sun used 3,251 shares and 3,205 shares, respectively, to calculate the “Net income (loss) excluding special items.” | |
For all other periods, the number of shares used to calculate “EPS (Diluted) (Reported)” and “EPS (Diluted) excluding special items” were the same. |
FY 2004 | FY 2003 | FY2002 | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Q1 | Q2 | Q3 | FY04 YTD | Q1 | Q2 | Q3 | Q4 | FY03 | Q3 | Q4 | FY02 | |||||||||||||||||||||||||||||||||||||||
REVENUE BY GEOGRAPHY | |||||||||||||||||||||||||||||||||||||||||||||||||||
UNITED STATES ($M) | 1,162 | 1,214 | 1,037 | 3,413 | 1,242 | 1,267 | 1,212 | 1,328 | 5,049 | 1,439 | 1,714 | 5,936 | |||||||||||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -6.4 | % | -4.2 | % | -14.4 | % | -8.3 | % | -7.8 | % | -11.8 | % | -15.8 | % | -22.5 | % | -14.9 | % | -13.9 | % | -9.9 | % | -32.4 | % | |||||||||||||||||||||||||||
Growth vs. prior quarter (%) | -12.5 | % | 4.5 | % | -14.6 | % | -27.5 | % | 2.0 | % | -4.3 | % | 9.6 | % | 0.2 | % | 19.1 | % | |||||||||||||||||||||||||||||||||
EUROPE ($M) | 780 | 928 | 921 | 2,629 | 806 | 932 | 886 | 954 | 3,578 | 924 | 973 | 3,606 | |||||||||||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -3.2 | % | -0.4 | % | 4.0 | % | 0.2 | % | -0.4 | % | 3.6 | % | -4.1 | % | -2.0 | % | -0.8 | % | -30.9 | % | -13.2 | % | -31.6 | % | |||||||||||||||||||||||||||
Growth vs. prior quarter (%) | -18.2 | % | 19.0 | % | -0.8 | % | -17.2 | % | 15.6 | % | -4.9 | % | 7.7 | % | 2.7 | % | 5.3 | % | |||||||||||||||||||||||||||||||||
JAPAN ($M) | 185 | 192 | 207 | 584 | 250 | 243 | 243 | 200 | 936 | 278 | 203 | 1,060 | |||||||||||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -26.0 | % | -21.0 | % | -14.8 | % | -20.7 | % | -12.9 | % | -16.8 | % | -12.6 | % | -1.5 | % | -11.7 | % | -43.6 | % | -43.8 | % | -38.0 | % | |||||||||||||||||||||||||||
Growth vs. prior quarter (%) | -7.5 | % | 3.8 | % | 7.8 | % | 23.2 | % | -2.8 | % | 0.0 | % | -17.7 | % | -4.8 | % | -27.0 | % | |||||||||||||||||||||||||||||||||
REST OF WORLD ($M) | 409 | 554 | 486 | 1,449 | 449 | 473 | 449 | 500 | 1,871 | 466 | 530 | 1,894 | |||||||||||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -8.9 | % | 17.1 | % | 8.2 | % | 5.7 | % | 7.4 | % | -1.5 | % | -3.6 | % | -5.7 | % | -1.2 | % | -21.4 | % | -13.3 | % | -24.0 | % | |||||||||||||||||||||||||||
Growth vs. prior quarter (%) | -18.2 | % | 35.5 | % | -12.3 | % | -15.3 | % | 5.3 | % | -5.1 | % | 11.4 | % | -2.9 | % | 13.7 | % | |||||||||||||||||||||||||||||||||
% of Total Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||
UNITED STATES (%) | 45.8 | % | 42.1 | % | 39.2 | % | 42.3 | % | 45.2 | % | 43.5 | % | 43.4 | % | 44.5 | % | 44.2 | % | 46.3 | % | 50.1 | % | 47.5 | % | |||||||||||||||||||||||||||
EUROPE (%) | 30.8 | % | 32.1 | % | 34.7 | % | 32.6 | % | 29.3 | % | 32.0 | % | 31.8 | % | 32.0 | % | 31.3 | % | 29.7 | % | 28.5 | % | 28.9 | % | |||||||||||||||||||||||||||
JAPAN (%) | 7.3 | % | 6.6 | % | 7.8 | % | 7.2 | % | 9.1 | % | 8.3 | % | 8.7 | % | 6.7 | % | 8.2 | % | 8.9 | % | 5.9 | % | 8.5 | % | |||||||||||||||||||||||||||
REST OF WORLD (%) | 16.1 | % | 19.2 | % | 18.3 | % | 17.9 | % | 16.3 | % | 16.2 | % | 16.1 | % | 16.8 | % | 16.4 | % | 15.0 | % | 15.5 | % | 15.2 | % | |||||||||||||||||||||||||||
PRODUCTS AND SERVICES REVENUE | |||||||||||||||||||||||||||||||||||||||||||||||||||
COMPUTER SYSTEMS PRODUCTS ($M) | 1,282 | 1,568 | 1,365 | 4,215 | 1,512 | 1,621 | 1,530 | 1,580 | 6,243 | 1,864 | 2,002 | 7,396 | |||||||||||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -15.2 | % | -3.3 | % | -10.8 | % | -9.6 | % | -10.6 | % | -11.8 | % | -17.9 | % | -21.1 | % | -15.6 | % | -31.3 | % | -21.4 | % | -40.3 | % | |||||||||||||||||||||||||||
Growth vs. prior quarter (%) | -18.9 | % | 22.3 | % | -12.9 | % | -24.5 | % | 7.2 | % | -5.6 | % | 3.3 | % | 1.4 | % | 7.4 | % | |||||||||||||||||||||||||||||||||
NETWORK STORAGE PRODUCTS ($M) | 352 | 376 | 346 | 1,074 | 368 | 392 | 367 | 423 | 1,550 | 405 | 505 | 1,697 | |||||||||||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -4.3 | % | -4.1 | % | -5.7 | % | -4.7 | % | 0.8 | % | -7.1 | % | -9.4 | % | -16.2 | % | -8.7 | % | -26.1 | % | -7.5 | % | -35.4 | % | |||||||||||||||||||||||||||
Growth vs. prior quarter (%) | -16.8 | % | 6.8 | % | -8.0 | % | -27.1 | % | 6.5 | % | -6.4 | % | 15.3 | % | -4.0 | % | 24.7 | % | |||||||||||||||||||||||||||||||||
SUPPORT SERVICES ($M) | 731 | 745 | 731 | 2,207 | 683 | 702 | 704 | 755 | 2,844 | 636 | 692 | 2,538 | |||||||||||||||||||||||||||||||||||||||
Growth vs. prior year (%) | 7.0 | % | 6.1 | % | 3.8 | % | 5.6 | % | 16.8 | % | 12.3 | % | 10.7 | % | 9.1 | % | 12.1 | % | 15.8 | % | 12.5 | % | 16.0 | % | |||||||||||||||||||||||||||
Growth vs. prior quarter (%) | -3.2 | % | 1.9 | % | -1.9 | % | -1.3 | % | 2.8 | % | 0.3 | % | 7.2 | % | 1.8 | % | 8.8 | % | |||||||||||||||||||||||||||||||||
PROFESSIONAL AND EDUCATION SERVICES ($M) | 171 | 199 | 209 | 579 | 184 | 200 | 189 | 224 | 797 | 202 | 221 | 865 | |||||||||||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -7.1 | % | -0.5 | % | 10.6 | % | 1.0 | % | -16.0 | % | -10.3 | % | -6.4 | % | 1.4 | % | -7.9 | % | -28.9 | % | -23.0 | % | -17.4 | % | |||||||||||||||||||||||||||
Growth vs. prior quarter (%) | -23.7 | % | 16.4 | % | 5.0 | % | -16.7 | % | 8.7 | % | -5.5 | % | 18.5 | % | -9.4 | % | 9.4 | % | |||||||||||||||||||||||||||||||||
NET BOOKINGS ($M) | 2,538 | 2,980 | 2,617 | 8,135 | 2,601 | 2,989 | 2,688 | 3,020 | 11,298 | 3,088 | 3,486 | 12,484 | |||||||||||||||||||||||||||||||||||||||
Growth vs. prior year (%) | -2.4 | % | -0.3 | % | -2.6 | % | -1.7 | % | -4.3 | % | -6.4 | % | -13.0 | % | -13.4 | % | -9.5 | % | -14.5 | % | -4.5 | % | -27.7 | % | |||||||||||||||||||||||||||
Growth vs. prior quarter (%) | -16.0 | % | 17.4 | % | -12.2 | % | -25.4 | % | 14.9 | % | -10.1 | % | 12.4 | % | -3.3 | % | 12.9 | % | |||||||||||||||||||||||||||||||||
BACKLOG ($M) | 707 | 799 | 765 | 765 | 695 | 769 | 667 | 705 | 705 | 775 | 841 | 841 |
BALANCE SHEETS | FY 2004 | FY 2003 | FY 2002 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Q1 | Q2 | Q3 | | Q1 | Q2 | Q3 | Q4 | | Q3 | Q4 | | |||||||||||||||||||||||||||||||||||||||||
CASH & ST INVESTMENTS | 2,520 | 2,160 | 2,372 | 2,632 | 2,606 | 2,636 | 3,062 | 2,384 | 2,885 | ||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS RECEIVABLE, NET | 1,905 | 2,214 | 2,201 | 2,133 | 2,291 | 2,296 | 2,381 | 2,407 | 2,745 | ||||||||||||||||||||||||||||||||||||||||||||
RAW MATERIALS | 133 | 120 | 129 | 136 | 119 | 101 | 114 | 206 | 168 | ||||||||||||||||||||||||||||||||||||||||||||
WORK IN PROCESS | 73 | 107 | 121 | 123 | 130 | 82 | 75 | 118 | 125 | ||||||||||||||||||||||||||||||||||||||||||||
FINISHED GOODS | 220 | 253 | 247 | 250 | 235 | 214 | 227 | 230 | 298 | ||||||||||||||||||||||||||||||||||||||||||||
TOTAL INVENTORIES | 426 | 480 | 497 | 509 | 484 | 397 | 416 | 554 | 591 | ||||||||||||||||||||||||||||||||||||||||||||
OTHER CURRENT ASSETS | 890 | 966 | 1,246 | 1,629 | 1,447 | 1,302 | 920 | 2,348 | 1,556 | ||||||||||||||||||||||||||||||||||||||||||||
TOTAL CURRENT ASSETS | 5,741 | 5,820 | 6,316 | 6,903 | 6,828 | 6,631 | 6,779 | 7,693 | 7,777 | ||||||||||||||||||||||||||||||||||||||||||||
PP&E,NET | 2,152 | 2,115 | 2,075 | 2,408 | 2,321 | 2,265 | 2,267 | 2,512 | 2,453 | ||||||||||||||||||||||||||||||||||||||||||||
GOODWILL | 389 | 466 | 470 | 2,182 | 326 | 326 | 326 | 2,182 | 2,182 | ||||||||||||||||||||||||||||||||||||||||||||
LT MARKETABLE DEBT SECURITIES | 3,006 | 3,001 | 3,111 | 2,612 | 2,671 | 2,902 | 2,679 | 3,564 | 2,979 | ||||||||||||||||||||||||||||||||||||||||||||
OTHER NON-CURRENT ASSETS, NET | 825 | 822 | 811 | 1,271 | 1,323 | 1,421 | 934 | 923 | 1,131 | ||||||||||||||||||||||||||||||||||||||||||||
TOTAL ASSETS | 12,113 | 12,224 | 12,783 | 15,376 | 13,469 | 13,545 | 12,985 | 16,874 | 16,522 | ||||||||||||||||||||||||||||||||||||||||||||
SHORT TERM BORROWINGS | 263 | 263 | 257 | 0 | 0 | 0 | 0 | 207 | 205 | ||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS PAYABLE | 780 | 906 | 1,011 | 798 | 809 | 870 | 903 | 935 | 1,044 | ||||||||||||||||||||||||||||||||||||||||||||
ACCRUED LIABILITIES & OTHER | 1,652 | 1,583 | 1,884 | 1,873 | 1,900 | 1,792 | 1,773 | 2,135 | 2,023 | ||||||||||||||||||||||||||||||||||||||||||||
DEFERRED REVENUES | 1,214 | 1,213 | 1,342 | 1,109 | 1,079 | 1,162 | 1,453 | 1,055 | 1,321 | ||||||||||||||||||||||||||||||||||||||||||||
TOTAL CURRENT LIABILITIES | 3,909 | 3,965 | 4,494 | 3,780 | 3,788 | 3,824 | 4,129 | 4,332 | 4,593 | ||||||||||||||||||||||||||||||||||||||||||||
LT DEBT | 1,215 | 1,214 | 1,209 | 1,500 | 1,519 | 1,495 | 1,531 | 1,384 | 1,449 | ||||||||||||||||||||||||||||||||||||||||||||
LT DEFERRED REVENUES | 462 | 463 | 537 | 547 | 520 | 512 | 450 | 570 | 477 | ||||||||||||||||||||||||||||||||||||||||||||
OTHER NON-CURRENT OBLIGATIONS | 364 | 343 | 990 | 240 | 369 | 354 | 384 | 857 | 202 | ||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | 6,163 | 6,239 | 5,553 | 9,309 | 7,273 | 7,360 | 6,491 | 9,731 | 9,801 | ||||||||||||||||||||||||||||||||||||||||||||
TOTAL LIABILITIES & SE | 12,113 | 12,224 | 12,783 | 15,376 | 13,469 | 13,545 | 12,985 | 16,874 | 16,522 | ||||||||||||||||||||||||||||||||||||||||||||
CASH FLOW | Q1 | Q2 | Q3 | FY04 YTD | Q1 | Q2 | Q3 | Q4 | FY03 | Q3 | Q4 | FY02 | |||||||||||||||||||||||||||||||||||||||||
OPERATING ACTIVITIES | (49 | ) | (282 | ) | 385 | 54 | 182 | 141 | 379 | 335 | 1,037 | 288 | 177 | 880 | |||||||||||||||||||||||||||||||||||||||
INVESTING ACTIVITIES | (492 | ) | 123 | (338 | ) | (707 | ) | 126 | (293 | ) | (108 | ) | (253 | ) | (528 | ) | 269 | 287 | 39 | ||||||||||||||||||||||||||||||||||
FINANCING ACTIVITIES | 7 | 106 | 31 | 144 | (696 | ) | 73 | 10 | 95 | (518 | ) | (90 | ) | (112 | ) | (367 | ) | ||||||||||||||||||||||||||||||||||||
KEY METRICS | Q1 | Q2 | Q3 | | Q1 | Q2 | Q3 | Q4 | | Q3 | Q4 | | |||||||||||||||||||||||||||||||||||||||||
INVENTORY TURNS (hist.) | 13.7 | 13.3 | 14.5 | 10.9 | 12.8 | 14.3 | 12.9 | 10.6 | 9.2 | ||||||||||||||||||||||||||||||||||||||||||||
INVENTORY TURNS-PRODUCT ONLY (hist.) | 9.0 | 8.7 | 9.3 | 7.8 | 9.0 | 9.9 | 8.6 | 7.8 | 6.7 | ||||||||||||||||||||||||||||||||||||||||||||
DAYS SALES OUTSTANDING | 68 | 69 | 75 | 70 | 71 | 74 | 72 | 70 | 72 | ||||||||||||||||||||||||||||||||||||||||||||
DAYS PAYABLES OUTSTANDING | (46 | ) | (49 | ) | (57 | ) | (44 | ) | (44 | ) | (51 | ) | (48 | ) | (47 | ) | (47 | ) | |||||||||||||||||||||||||||||||||||
DAYS OF SUPPLY ON HAND | 25 | 26 | 28 | 28 | 26 | 23 | 22 | 28 | 27 | ||||||||||||||||||||||||||||||||||||||||||||
LT DEBT/EQUITY(%) | 19.7 | % | 19.5 | % | 21.8 | % | 16.1 | % | 20.9 | % | 20.3 | % | 23.6 | % | 14.2 | % | 14.8 | % | |||||||||||||||||||||||||||||||||||
ROE (12 mo. avg.)(%) | -52.8 | % | -22.0 | % | -36.2 | % | -5.3 | % | -26.3 | % | -27.6 | % | -45.1 | % | -7.3 | % | -5.9 | % | |||||||||||||||||||||||||||||||||||
BOOK VALUE PER SHARE($) | 1.90 | 1.90 | 1.69 | 2.99 | 2.28 | 2.30 | 2.01 | 3.00 | 3.03 | ||||||||||||||||||||||||||||||||||||||||||||
PRICE PER SHARE @ CLOSE | 3.84 | 4.38 | 4.11 | 2.67 | 3.25 | 3.43 | 4.65 | 9.52 | 5.01 | ||||||||||||||||||||||||||||||||||||||||||||
P/E RATIO (previous 4 qtrs) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
ROA (12 mo. avg.)(%) | -27.7 | % | -11.4 | % | -17.6 | % | -3.1 | % | -15.2 | % | -15.8 | % | -24.8 | % | -4.2 | % | -3.5 | % | |||||||||||||||||||||||||||||||||||
DEPREC. & AMORT. ($M) | 218 | 189 | 184 | 272 | 275 | 216 | 265 | 273 | 286 | ||||||||||||||||||||||||||||||||||||||||||||
CAPITAL EXPENDITURES ($M) | 55 | 72 | 62 | 83 | 98 | 57 | 135 | 126 | 98 | ||||||||||||||||||||||||||||||||||||||||||||
NUMBER OF EMPLOYEES | 36,014 | 35,802 | 35,386 | 39,001 | 36,460 | 35,745 | 36,068 | 39,473 | 39,433 | ||||||||||||||||||||||||||||||||||||||||||||
REV. PER EMP. (12 mo.)($K) | 311.6 | 312.7 | 312.5 | 317.5 | 334.3 | 332.1 | 317.0 | 331.1 | 316.9 | ||||||||||||||||||||||||||||||||||||||||||||
GM PER EMP. (12mo.)($K) | 134.0 | 133.3 | 129.9 | 128.0 | 140.3 | 141.3 | 137.0 | 130.4 | 124.7 | ||||||||||||||||||||||||||||||||||||||||||||
OP EXP AS % OF REV (12mo.) | 67.6 | % | 45.7 | % | 48.6 | % | 48.9 | % | 65.0 | % | 65.0 | % | 67.0 | % | 50.8 | % | 49.3 | % | |||||||||||||||||||||||||||||||||||
NET INCOME (LOSS) PER EMP. (12mo.)($K) | (100.1 | ) | (40.4 | ) | (62.5 | ) | (13.3 | ) | (65.0 | ) | (65.2 | ) | (95.1 | ) | (18.6 | ) | (14.9 | ) |