Exhibit 99.1
SUN MICROSYSTEMS REPORTS RESULTS FOR
FOURTH QUARTER FISCAL YEAR 2006
—Total revenues up 29% year over year; up 21% sequentially
—Sequential revenue growth fueled by Solaris 10 Operating System and increasing acceptance of recently introduced products
SANTA CLARA, Calif. - July 25, 2006 - Sun Microsystems, Inc., (NASDAQ: SUNW) reported results today for its fiscal fourth quarter, which ended June 30, 2006.
Revenues for the fourth quarter of fiscal 2006 were $3.828 billion, an increase of 29 percent as compared with $2.974 billion for the fourth quarter of fiscal 2005. Year over year revenue increase resulted from both acquisitions and increasing acceptance of the SolarisTM 10 Operating System, as well as recently introduced products. Computer Systems Products revenues increased 15% year over year, the second consecutive quarter of year over year revenue increase.
Net loss for the fourth quarter of fiscal 2006 on a GAAP basis was $301 million or a net loss of ($0.09) per share, as compared with net income of $50 million, or net income per share of $0.01, for the fourth quarter of fiscal 2005.
GAAP net loss for the fourth quarter of fiscal 2006 included: $86 million principally related to intangible asset amortization associated with recent acquisitions, $63 million of stock-based compensation charges relating to the adoption of SFAS 123R, $228 million of restructuring charges and an $8 million benefit for related tax effects, $70 million in impairment of acquisition-related intangible assets, $54 million in settlement income, and a $4 million loss on equity investments. In addition, we incurred a $58 million tax charge and $14 million reduction in other income due to a repatriation of foreign earnings. The net impact of these nine items was approximately ($0.13) per share.
Cash generated from operations for the fourth quarter was $410 million and cash and marketable debt securities balance at the end of the quarter was $4.848 billion.
“We’re making excellent progress returning Sun to growth and profitability. Revenue, bookings and backlog are all up substantially - indicating we’re gaining traction, market confidence and share,” said Jonathan Schwartz, CEO, Sun Microsystems. “Our position is steadily improving - among a few highlights: the Solaris OS exceeded 5 million licenses in Q4, largely on Dell and HP servers, and on Sun. The JavaTMplatform continues to drive demand in the datacenter and on leading consumer devices. And by opening our UltraSPARC® platforms to Ubuntu Linux - we’re proving great products and customer choice matter.”
“Our total revenues grew by more than 20% sequentially in the June quarter, and this was the largest sequential growth from Q3 to Q4 since fiscal 2000. Our revenue growth was fairly broad-based from both a geographic and industry basis. In the former Sun standalone business, more than half of our 15 geographies had double-digit product revenue growth year over year. The company did an outstanding job remaining focused on the fundamentals, including shipping product, controlling inventory, and managing the overall cash conversion cycle. And, we’re starting the new fiscal year with a healthy product backlog of over $1 billion,” said Michael Lehman, chief financial officer and executive vice president, Corporate Resources, Sun Microsystems.
Sun has scheduled a conference call today to discuss its financial results for Q4 fiscal year 2006 at 1:30 p.m. (PT), which is being broadcast live atwww.sun.com/investors.
About Sun Microsystems, Inc.
A singular vision — “The Network Is The Computer”TM — guides Sun in the development of technologies that power the world’s most important markets. Sun’s philosophy of sharing innovation and building communities is at the forefront of the next wave of computing: the Participation Age. Sun can be found in more than 100 countries and on the Web at sun.com.
FOR MORE INFORMATION
INVESTOR CONTACT:
Bret Schaefer (650) 786-0123
bret.schaefer@sun.com
MEDIA CONTACT:
Kristi Rawlinson (650) 786-6933
kristi.rawlinson@sun.com
INDUSTRY ANALYST CONTACT:
Emma Johnson (650) 786-3746
emma.johnson@sun.com
This press release contains forward-looking statements regarding the future results and performance of Sun Microsystems, Inc., including statements regarding returning to growth and profitability, increasing share and improving market position. These forward-looking statements involve risks and uncertainties and actual results could differ materially from those predicted in any such forward-looking statements. Factors that could cause actual results to differ materially from those contained in our projections and forward-looking statements include: risks associated with Sun’s ability to achieve expected cost reductions within expected time frames; increased competition; failure to rapidly and successfully develop and introduce new products; reliance on
single-source suppliers; risks associated with Sun’s ability to purchase a sufficient amount of components to meet demand; inventory risks; risks associated with international customers and operations; delays in product development or customer acceptance and implementation of new products and technologies; Sun’s dependence on significant customers and specific industries; Sun’s dependence on channel partners; and failure to successfully integrate acquired companies. Please also refer to Sun’s periodic reports that are filed from time to time with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2005 and its Quarterly Reports on Form 10-Q for the fiscal quarters ended September 25, 2005, December 25, 2005 and March 26, 2006. Sun assumes no obligation to, and does not currently intend to, update these forward-looking statements.
To supplement Sun’s consolidated financial statements presented in accordance with GAAP, Sun provides non-GAAP net income (loss) and non-GAAP net income (loss) per share data. The presentation of these non-GAAP financial measures should be considered in addition to Sun’s GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Sun’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain charges, gains and tax effects that may not be indicative of Sun’s core business operating results. Sun believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Sun’s performance. These non-GAAP financial measures also facilitate comparisons to Sun’s historical performance and its competitors’ operating results. Sun includes these non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. Non-GAAP measures are reconciled to comparable GAAP measures in the table entitled “Non-GAAP Calculation of Net Income (Loss) Excluding Special Items “ following the text of this press release.
Sun, Sun Microsystems, the Sun logo, Solaris, Java and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and in other countries. All SPARC trademarks are used under license and are trademarks or registered trademarks of SPARC International, Inc. in the US and other countries. Products bearing SPARC trademarks are based upon an architecture developed by Sun Microsystems, Inc.
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions, except per share amounts)
| Three Months Ended | Fiscal Years Ended | |||||||||||||||
| June 30, 2006 | June 30, 2005 | June 30, 2006 | June 30, 2005 * | |||||||||||||
Net revenues: | ||||||||||||||||
Products | $ | 2,524 | $ | 1,927 | $ | 8,371 | $ | 7,126 | ||||||||
Services | 1,304 | 1,047 | 4,697 | 3,944 | ||||||||||||
Total net revenues | 3,828 | 2,974 | 13,068 | 11,070 | ||||||||||||
Cost of sales: | ||||||||||||||||
Cost of sales-products (including stock-based compensation expense of $3 and $10)(1) | 1,486 | 1,130 | 4,827 | 4,174 | ||||||||||||
Cost of sales-services (including stock-based compensation expense of $8 and $29)(1) | 703 | 613 | 2,612 | 2,307 | ||||||||||||
Total cost of sales | 2,189 | 1,743 | 7,439 | 6,481 | ||||||||||||
Gross margin | 1,639 | 1,231 | 5,629 | 4,589 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development (including stock-based compensation expense of $19 and $74)(1) | 543 | 472 | 2,046 | 1,785 | ||||||||||||
Selling, general and administrative (including stock-based compensation expense of $33 and $112)(1) | 1,133 | 788 | 4,037 | 2,919 | ||||||||||||
Restructuring charges | 228 | 86 | 286 | 262 | ||||||||||||
Impairment of other acquisition-related intangible assets | 70 | — | 70 | — | ||||||||||||
Purchased in-process research and development | — | — | 60 | — | ||||||||||||
Total operating expenses | 1,974 | 1,346 | 6,499 | 4,966 | ||||||||||||
Operating loss | (335 | ) | (115 | ) | (870 | ) | (377 | ) | ||||||||
Gain (loss) on equity investments, net | (4 | ) | (1 | ) | 27 | 6 | ||||||||||
Interest and other income, net | 19 | 32 | 114 | 133 | ||||||||||||
Settlement income | 54 | — | 54 | 54 | ||||||||||||
Loss before income taxes | (266 | ) | (84 | ) | (675 | ) | (184 | ) | ||||||||
Provision for (benefit from) income taxes | 35 | (134 | ) | 189 | (77 | ) | ||||||||||
Net income (loss) | $ | (301 | ) | $ | 50 | $ | (864 | ) | $ | (107 | ) | |||||
Net income (loss) per common share-basic | $ | (0.09 | ) | $ | 0.01 | $ | (0.25 | ) | $ | (0.03 | ) | |||||
Net income (loss) per common share-diluted | $ | (0.09 | ) | $ | 0.01 | $ | (0.25 | ) | $ | (0.03 | ) | |||||
Shares used in the calculation of net income (loss) per common share-basic | 3,475 | 3,399 | 3,437 | 3,368 | ||||||||||||
Shares used in the calculation of net income (loss) per common share-diluted | 3,475 | 3,410 | 3,437 | 3,368 | ||||||||||||
| (1) | For the three months and fiscal year ended June 30, 2006, respectively. |
| * | Derived from audited financial statements |
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
| June 30, 2006 | June 30, 2005* | |||||
| (unaudited) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 3,569 | $ | 2,051 | ||
Short-term marketable debt securities | 496 | 1,345 | ||||
Accounts receivable, net | 2,702 | 2,231 | ||||
Inventories | 540 | 431 | ||||
Deferred and prepaid tax assets | 118 | 255 | ||||
Prepaid expenses and other current assets | 757 | 878 | ||||
Total current assets | 8,182 | 7,191 | ||||
Property, plant and equipment, net | 1,806 | 1,769 | ||||
Long-term marketable debt securities | 783 | 4,128 | ||||
Goodwill | 2,569 | 441 | ||||
Other acquisition-related intangible assets, net | 929 | 113 | ||||
Other non-current assets, net | 657 | 548 | ||||
| $ | 14,926 | $ | 14,190 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Current portion of long-term debt and short-term borrowings | $ | 503 | $ | — | ||
Accounts payable | 1,446 | 1,167 | ||||
Accrued payroll-related liabilities | 777 | 713 | ||||
Accrued liabilities and other | 1,185 | 1,014 | ||||
Deferred revenues | 1,988 | 1,648 | ||||
Warranty reserve | 261 | 224 | ||||
Total current liabilities | 6,160 | 4,766 | ||||
Long-term debt | 575 | 1,123 | ||||
Long-term deferred revenues | 546 | 544 | ||||
Other non-current obligations | 1,301 | 1,083 | ||||
Total stockholders’ equity | 6,344 | 6,674 | ||||
| $ | 14,926 | $ | 14,190 | |||
| * | Derived from audited financial statements |
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
| Fiscal Years Ended | ||||||||
| June 30, 2006 | June 30, 2005 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (864 | ) | $ | (107 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 575 | 671 | ||||||
Amortization of other acquisition related intangible assets | 331 | 96 | ||||||
Tax benefits from employee stock plan | — | 25 | ||||||
Deferred taxes | 73 | (315 | ) | |||||
Impairment of assets | 155 | — | ||||||
(Gain) loss on investments, net | (10 | ) | 9 | |||||
Stock-based compensation expense | 225 | — | ||||||
Purchased in-process research and development | 60 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (163 | ) | 111 | |||||
Inventories | 44 | 32 | ||||||
Prepaid and other assets | 246 | (19 | ) | |||||
Accounts payable | 130 | 105 | ||||||
Other liabilities | (162 | ) | (239 | ) | ||||
Net cash provided by operating activities | 640 | 369 | ||||||
Cash flows from investing activities: | ||||||||
Increase in restricted cash | (69 | ) | — | |||||
Purchases of marketable debt securities | (1,831 | ) | (7,154 | ) | ||||
Proceeds from sales of marketable debt securities | 5,434 | 6,181 | ||||||
Proceeds from maturities of marketable debt securities | 580 | 941 | ||||||
Proceeds from sales of equity investments, net | 15 | 49 | ||||||
Purchases of property, plant and equipment, net | (315 | ) | (257 | ) | ||||
Purchases of spare parts and other assets | (73 | ) | (90 | ) | ||||
Payments for acquisitions, net of cash acquired | (3,162 | ) | (95 | ) | ||||
Net cash provided by (used in) investing activities | 579 | (425 | ) | |||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock, net | 249 | 218 | ||||||
Principal payments on borrowings and other obligations | 50 | (252 | ) | |||||
Net cash provided by (used in) financing activities | 299 | (34 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 1,518 | (90 | ) | |||||
Cash and cash equivalents, beginning of period | 2,051 | 2,141 | ||||||
Cash and cash equivalents, end of period | $ | 3,569 | $ | 2,051 | ||||
SUN MICROSYSTEMS, INC.
NON-GAAP CALCULATION OF NET INCOME (LOSS) EXCLUDING SPECIAL ITEMS
(unaudited)
(in millions, except per share amounts)
| Three Months Ended | Fiscal Years Ended | |||||||||||||||
| June 30, 2006 | June 30, 2005 | June 30, 2006 | June 30, 2005 | |||||||||||||
Calculation of net income (loss) excluding special items: | ||||||||||||||||
Net income (loss)**, *** | $ | (301 | ) | $ | 50 | $ | (864 | ) | $ | (107 | ) | |||||
Restructuring charges | 228 | 86 | 286 | 262 | ||||||||||||
Impairment of other acquisition-related intangible assets | 70 | — | 70 | — | ||||||||||||
Purchased in-process research and development | — | — | 60 | — | ||||||||||||
Loss (gain) on equity investments, net | 4 | 1 | (27 | ) | (6 | ) | ||||||||||
Settlement income | (54 | ) | — | (54 | ) | (54 | ) | |||||||||
Settlement of litigation* | — | — | — | 55 | ||||||||||||
Valuation allowance on deferred tax assets | — | — | — | (34 | ) | |||||||||||
Related tax effects | (8 | ) | (6 | ) | (19 | ) | (26 | ) | ||||||||
Net income (loss) excluding special items | $ | (61 | ) | $ | 131 | $ | (548 | ) | $ | 90 | ||||||
Net income (loss) excluding special items per common share – basic | $ | (0.02 | ) | $ | 0.04 | $ | (0.16 | ) | $ | 0.03 | ||||||
Net income (loss) excluding special items per common share – diluted | $ | (0.02 | ) | $ | 0.04 | $ | (0.16 | ) | $ | 0.03 | ||||||
Shares used in the calculation of net income (loss) excluding special items per common share – basic | 3,475 | 3,399 | 3,437 | 3,368 | ||||||||||||
Shares used in the calculation of net income (loss) excluding special items per common share – diluted | 3,475 | 3,410 | 3,437 | 3,392 | ||||||||||||
| * | Included in Cost of sales – products |
| ** | Net loss for the three months and fiscal year ended June 30, 2006 included $63 million and $225 million of stock-based compensation expense or approximately $0.02 per share and $0.07 per share, respectively. |
| *** | Net loss for the three months and fiscal year ended June 30, 2006 included $86 million and $440 million of purchase price accounting adjustments and intangible asset amortization relating to our recent acquisitions or approximately $0.02 per share and $0.13 per share, respectively. |
SUN MICROSYSTEMS, INC.
OPERATIONS ANALYSIS – CONSOLIDATED (UNAUDITED)
STATEMENTS OF OPERATIONS
| FY 2006 | FY 2005 | FY 2004 | ||||||||||||||||||||||||||||||||||
(in millions except per share amounts) | Q1 | Q2 | Q3 | Q4 | FY06 | Q1 | Q2 | Q3 | Q4 | FY05 | Q4 | FY04 | ||||||||||||||||||||||||
| (Restated) | (Restated) | (Restated) | (Restated) | |||||||||||||||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||||||||||||
Products | 1,704 | 2,108 | 2,035 | 2,524 | 8,371 | 1,676 | 1,840 | 1,683 | 1,927 | 7,126 | 2,066 | 7,355 | ||||||||||||||||||||||||
Services | 1,022 | 1,229 | 1,142 | 1,304 | 4,697 | 952 | 1,001 | 944 | 1,047 | 3,944 | 1,044 | 3,830 | ||||||||||||||||||||||||
TOTAL | 2,726 | 3,337 | 3,177 | 3,828 | 13,068 | 2,628 | 2,841 | 2,627 | 2,974 | 11,070 | 3,110 | 11,185 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 3.7 | % | 17.5 | % | 20.9 | % | 28.7 | % | 18.0 | % | 3.6 | % | -1.6 | % | -0.9 | % | -4.4 | % | -1.0 | % | 4.3 | % | -2.2 | % | ||||||||||||
Growth vs. prior quarter (%) | -8.3 | % | 22.4 | % | -4.8 | % | 20.5 | % | -15.5 | % | 8.1 | % | -7.5 | % | 13.2 | % | 17.3 | % | ||||||||||||||||||
COST OF SALES | ||||||||||||||||||||||||||||||||||||
Products | 966 | 1,223 | 1,152 | 1,486 | 4,827 | 949 | 1,065 | 975 | 1,130 | 4,119 | 1,238 | 4,290 | ||||||||||||||||||||||||
Cost of settlement | 0 | 0 | 0 | 0 | 0 | 55 | 0 | 0 | 0 | 55 | 0 | 0 | ||||||||||||||||||||||||
Total | 966 | 1,223 | 1,152 | 1,486 | 4,827 | 1,004 | 1,065 | 975 | 1,130 | 4,174 | 1,238 | 4,290 | ||||||||||||||||||||||||
Services | 558 | 693 | 658 | 703 | 2,612 | 551 | 578 | 565 | 613 | 2,307 | 648 | 2,379 | ||||||||||||||||||||||||
TOTAL | 1,524 | 1,916 | 1,810 | 2,189 | 7,439 | 1,555 | 1,643 | 1,540 | 1,743 | 6,481 | 1,886 | 6,669 | ||||||||||||||||||||||||
% of revenue | 55.9 | % | 57.4 | % | 57.0 | % | 57.2 | % | 56.9 | % | 59.2 | % | 57.8 | % | 58.6 | % | 58.6 | % | 58.5 | % | 60.6 | % | 59.6 | % | ||||||||||||
GROSS MARGIN | ||||||||||||||||||||||||||||||||||||
Products | 738 | 885 | 883 | 1,038 | 3,544 | 727 | 775 | 708 | 797 | 3,007 | 828 | 3,065 | ||||||||||||||||||||||||
% of product revenue | 43.3 | % | 42.0 | % | 43.4 | % | 41.1 | % | 42.3 | % | 43.4 | % | 42.1 | % | 42.1 | % | 41.4 | % | 42.2 | % | 40.1 | % | 41.7 | % | ||||||||||||
Cost of settlement | 0 | 0 | 0 | 0 | 0 | (55 | ) | 0 | 0 | 0 | (55 | ) | 0 | 0 | ||||||||||||||||||||||
% of product revenue | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | -3.3 | % | 0.0 | % | 0.0 | % | 0.0 | % | -0.8 | % | 0.0 | % | 0.0 | % | ||||||||||||
Total product margin | 738 | 885 | 883 | 1,038 | 3,544 | 672 | 775 | 708 | 797 | 2,952 | 828 | 3,065 | ||||||||||||||||||||||||
% of product revenue | 43.3 | % | 42.0 | % | 43.4 | % | 41.1 | % | 42.3 | % | 40.1 | % | 42.1 | % | 42.1 | % | 41.4 | % | 41.4 | % | 40.1 | % | 41.7 | % | ||||||||||||
Services gross margin | 464 | 536 | 484 | 601 | 2,085 | 401 | 423 | 379 | 434 | 1,637 | 396 | 1,451 | ||||||||||||||||||||||||
% of service revenue | 45.4 | % | 43.6 | % | 42.4 | % | 46.1 | % | 44.4 | % | 42.1 | % | 42.3 | % | 40.1 | % | 41.5 | % | 41.5 | % | 37.9 | % | 37.9 | % | ||||||||||||
Total excluding settlement | 1,202 | 1,421 | 1,367 | 1,639 | 5,629 | 1,128 | 1,198 | 1,087 | 1,231 | 4,644 | 1,224 | 4,516 | ||||||||||||||||||||||||
% of revenue | 44.1 | % | 42.6 | % | 43.0 | % | 42.8 | % | 43.1 | % | 42.9 | % | 42.2 | % | 41.4 | % | 41.4 | % | 42.0 | % | 39.4 | % | 40.4 | % | ||||||||||||
Cost of settlement | 0 | 0 | 0 | 0 | 0 | (55 | ) | 0 | 0 | 0 | (55 | ) | 0 | 0 | ||||||||||||||||||||||
% of revenue | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | -2.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | -0.5 | % | 0.0 | % | 0.0 | % | ||||||||||||
TOTAL | 1,202 | 1,421 | 1,367 | 1,639 | 5,629 | 1,073 | 1,198 | 1,087 | 1,231 | 4,589 | 1,224 | 4,516 | ||||||||||||||||||||||||
% of revenue | 44.1 | % | 42.6 | % | 43.0 | % | 42.8 | % | 43.1 | % | 40.8 | % | 42.2 | % | 41.4 | % | 41.4 | % | 41.5 | % | 39.4 | % | 40.4 | % | ||||||||||||
R&D | 439 | 541 | �� | 523 | 543 | 2,046 | 416 | 447 | 450 | 472 | 1,785 | 518 | 1,926 | |||||||||||||||||||||||
% of revenue | 16.1 | % | 16.2 | % | 16.5 | % | 14.2 | % | 15.7 | % | 15.8 | % | 15.7 | % | 17.1 | % | 15.9 | % | 16.1 | % | 16.7 | % | 17.2 | % | ||||||||||||
PURCHASED IN PROCESS R&D | 60 | 0 | 0 | 0 | 60 | 0 | 0 | 0 | 0 | 0 | 69 | 70 | ||||||||||||||||||||||||
% of revenue | 2.2 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.5 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 2.2 | % | 0.6 | % | ||||||||||||
SG&A | 828 | 1,056 | 1,020 | 1,133 | 4,037 | 670 | 726 | 735 | 788 | 2,919 | 849 | 3,317 | ||||||||||||||||||||||||
% of revenue | 30.4 | % | 31.6 | % | 32.1 | % | 29.6 | % | 30.9 | % | 25.5 | % | 25.6 | % | 28.0 | % | 26.5 | % | 26.4 | % | 27.3 | % | 29.7 | % | ||||||||||||
RESTRUCTURING CHARGES | 12 | 10 | 36 | 228 | 286 | 108 | 24 | 44 | 86 | 262 | 150 | 344 | ||||||||||||||||||||||||
% of revenue | 0.4 | % | 0.3 | % | 1.1 | % | 6.0 | % | 2.2 | % | 4.1 | % | 0.8 | % | 1.7 | % | 2.9 | % | 2.4 | % | 4.8 | % | 3.1 | % | ||||||||||||
IMPAIRMENT EXPENSE | 0 | 0 | 0 | 70 | 70 | 0 | 0 | 0 | 0 | 0 | 49 | 49 | ||||||||||||||||||||||||
% of revenue | 0.0 | % | 0.0 | % | 0.0 | % | 1.8 | % | 0.5 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 1.6 | % | 0.4 | % | ||||||||||||
TOTAL OPERATING EXPENSES | 1,339 | 1,607 | 1,579 | 1,974 | 6,499 | 1,194 | 1,197 | 1,229 | 1,346 | 4,966 | 1,635 | 5,706 | ||||||||||||||||||||||||
% of revenue | 49.1 | % | 48.2 | % | 49.7 | % | 51.6 | % | 49.7 | % | 45.4 | % | 42.1 | % | 46.8 | % | 45.3 | % | 44.9 | % | 52.6 | % | 51.0 | % | ||||||||||||
OPERATING INCOME (LOSS) | (137 | ) | (186 | ) | (212 | ) | (335 | ) | (870 | ) | (121 | ) | 1 | (142 | ) | (115 | ) | (377 | ) | (411 | ) | (1,190 | ) | |||||||||||||
Operating margin | -5.0 | % | -5.6 | % | -6.7 | % | -8.8 | % | -6.7 | % | -4.6 | % | 0.0 | % | -5.4 | % | -3.9 | % | -3.4 | % | -13.2 | % | -10.6 | % | ||||||||||||
Interest and other income, net | 44 | 25 | 26 | 19 | 114 | 31 | 33 | 37 | 32 | 133 | 30 | 94 | ||||||||||||||||||||||||
Gain (loss) on equity investments, net | 13 | 14 | 4 | (4 | ) | 27 | (4 | ) | 9 | 2 | (1 | ) | 6 | (6 | ) | (64 | ) | |||||||||||||||||||
Settlement income | 0 | 0 | 0 | 54 | 54 | 0 | 0 | 54 | 0 | 54 | 1,597 | 1,597 | ||||||||||||||||||||||||
PRETAX INCOME (LOSS) | (80 | ) | (147 | ) | (182 | ) | (266 | ) | (675 | ) | (94 | ) | 43 | (49 | ) | (84 | ) | (184 | ) | 1,210 | 437 | |||||||||||||||
Pretax income (loss) margin | -2.9 | % | -4.4 | % | -5.7 | % | -6.9 | % | -5.2 | % | -3.6 | % | 1.5 | % | -1.9 | % | -2.8 | % | -1.7 | % | 38.9 | % | 3.9 | % | ||||||||||||
INCOME TAX PROVISION (BENEFIT) | 43 | 76 | 35 | 35 | 189 | 39 | 39 | (21 | ) | (134 | ) | (77 | ) | 430 | 825 | |||||||||||||||||||||
TAX RATE (%) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
NET INCOME (LOSS) (Reported) | (123 | ) | (223 | ) | (217 | ) | (301 | ) | (864 | ) | (133 | ) | 4 | (28 | ) | 50 | (107 | ) | 780 | (388 | ) | |||||||||||||||
Growth vs. prior year (%) | 7.5 | % | -5675.0 | % | -675.0 | % | -702.0 | % | -707.5 | % | 53.8 | % | 103.2 | % | 96.3 | % | -93.6 | % | 72.4 | % | 178.5 | % | 88.5 | % | ||||||||||||
Growth vs. prior quarter (%) | -346.0 | % | -81.3 | % | 2.7 | % | -38.7 | % | -117.1 | % | 103.0 | % | -800.0 | % | 278.6 | % | 203.4 | % | ||||||||||||||||||
Net income (loss) margin | -4.5 | % | -6.7 | % | -6.8 | % | -7.9 | % | -6.6 | % | -5.1 | % | 0.1 | % | -1.1 | % | 1.7 | % | -1.0 | % | 25.1 | % | -3.5 | % | ||||||||||||
EPS (Diluted) (Reported) | (0.04 | ) | (0.07 | ) | (0.06 | ) | (0.09 | ) | (0.25 | ) | (0.04 | ) | 0.00 | (0.01 | ) | 0.01 | (0.03 | ) | 0.23 | (0.12 | ) | |||||||||||||||
Growth vs. prior year (%) | 0.0 | % | -100.0 | % | -500.0 | % | -1000.0 | % | -733.3 | % | 55.6 | % | 100.0 | % | 95.7 | % | -95.7 | % | 75.0 | % | 174.2 | % | -88.7 | % | ||||||||||||
Growth vs. prior quarter (%) | -500.0 | % | -75.0 | % | 14.3 | % | -50.0 | % | -117.4 | % | 100.0 | % | N/A | 100.0 | % | 200.0 | % | |||||||||||||||||||
SHARES (CSE)(Diluted) | 3,407 | 3,424 | 3,443 | 3,475 | 3,437 | 3,343 | 3,400 | 3,376 | 3,410 | 3,368 | 3,348 | 3,277 | ||||||||||||||||||||||||
OUTSTANDING SHARES | 3,409 | 3,458 | 3,470 | 3,505 | 3,505 | 3,344 | 3,375 | 3,381 | 3,408 | 3,408 | 3,336 | 3,336 | ||||||||||||||||||||||||
The information above has been restated to reflect the adjustments that are further discussed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2005, filed with the SEC on September 13, 2005.
| FY 2006 | FY 2005 | FY 2004 | ||||||||||||||||||||||||||||||||||
(in millions) | Q1 | Q2 | Q3 | Q4 | FY06 | Q1 | Q2 | Q3 | Q4 | FY05 | Q4 | FY04 | ||||||||||||||||||||||||
REVENUE BY GEOGRAPHY | ||||||||||||||||||||||||||||||||||||
UNITED STATES ($M) | 1,159 | 1,373 | 1,325 | 1,523 | 5,380 | 1,105 | 1,130 | 982 | 1,175 | 4,392 | 1,355 | 4,768 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 4.9 | % | 21.5 | % | 34.9 | % | 29.6 | % | 22.5 | % | -4.9 | % | -6.9 | % | -5.3 | % | -13.3 | % | -7.9 | % | 2.1 | % | -5.5 | % | ||||||||||||
Growth vs. prior quarter (%) | -1.4 | % | 18.5 | % | -3.5 | % | 14.9 | % | -18.5 | % | 2.3 | % | -13.1 | % | 19.7 | % | 30.7 | % | ||||||||||||||||||
INTERNATIONAL AMERICAS ($M) | 141 | 194 | 207 | 273 | 815 | 110 | 165 | 144 | 171 | 590 | 158 | 562 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 28.2 | % | 17.6 | % | 43.8 | % | 59.6 | % | 38.1 | % | -5.2 | % | 8.6 | % | 5.9 | % | 8.2 | % | 5.0 | % | 9.7 | % | 3.5 | % | ||||||||||||
Growth vs. prior quarter (%) | -17.5 | % | 37.6 | % | 6.7 | % | 31.9 | % | -30.4 | % | 50.0 | % | -12.7 | % | 18.8 | % | 16.2 | % | ||||||||||||||||||
EMEA ($M) | 970 | 1,239 | 1,119 | 1,375 | 4,703 | 973 | 1,037 | 1,009 | 1,133 | 4,152 | 1,087 | 3,942 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 0.0 | % | 19.5 | % | 10.9 | % | 21.4 | % | 13.3 | % | 18.4 | % | 0.6 | % | 0.7 | % | 4.2 | % | 5.3 | % | 7.6 | % | 4.2 | % | ||||||||||||
Growth vs. prior quarter (%) | -14.4 | % | 27.7 | % | -9.7 | % | 22.9 | % | -10.5 | % | 6.6 | % | -2.7 | % | 12.3 | % | 8.5 | % | ||||||||||||||||||
APAC ($M) | 456 | 531 | 526 | 657 | 2,170 | 440 | 509 | 492 | 495 | 1,936 | 510 | 1,913 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 3.6 | % | 4.3 | % | 6.9 | % | 32.7 | % | 12.1 | % | 0.9 | % | 3.7 | % | 3.4 | % | -2.9 | % | 1.2 | % | 1.8 | % | -7.1 | % | ||||||||||||
Growth vs. prior quarter (%) | -7.9 | % | 16.4 | % | -0.9 | % | 24.9 | % | -13.7 | % | 15.7 | % | -3.3 | % | 0.6 | % | 7.1 | % | ||||||||||||||||||
% of Total Revenue | ||||||||||||||||||||||||||||||||||||
UNITED STATES (%) | 42.5 | % | 41.2 | % | 41.7 | % | 39.8 | % | 41.2 | % | 42.1 | % | 39.8 | % | 37.4 | % | 39.6 | % | 39.7 | % | 43.5 | % | 42.7 | % | ||||||||||||
INTERNATIONAL AMERICAS (%) | 5.2 | % | 5.8 | % | 6.5 | % | 7.1 | % | 6.2 | % | 4.2 | % | 5.8 | % | 5.5 | % | 5.7 | % | 5.3 | % | 5.1 | % | 5.0 | % | ||||||||||||
EMEA (%) | 35.6 | % | 37.1 | % | 35.2 | % | 35.9 | % | 36.0 | % | 37.0 | % | 36.5 | % | 38.4 | % | 38.1 | % | 37.5 | % | 35.0 | % | 35.2 | % | ||||||||||||
APAC (%) | 16.7 | % | 15.9 | % | 16.6 | % | 17.2 | % | 16.6 | % | 16.7 | % | 17.9 | % | 18.7 | % | 16.6 | % | 17.5 | % | 16.4 | % | 17.1 | % | ||||||||||||
PRODUCTS AND SERVICES REVENUE | ||||||||||||||||||||||||||||||||||||
COMPUTER SYSTEMS PRODUCTS ($M) | 1,274 | 1,438 | 1,474 | 1,811 | 5,997 | 1,354 | 1,505 | 1,391 | 1,576 | 5,826 | 1,639 | 5,854 | ||||||||||||||||||||||||
Growth vs. prior year (%) | -5.9 | % | -4.5 | % | 6.0 | % | 14.9 | % | 2.9 | % | 5.6 | % | -4.0 | % | 1.9 | % | -3.8 | % | -0.5 | % | 3.7 | % | -6.2 | % | ||||||||||||
Growth vs. prior quarter (%) | -19.2 | % | 12.9 | % | 2.5 | % | 22.9 | % | -17.4 | % | 11.2 | % | -7.6 | % | 13.3 | % | 20.1 | % | ||||||||||||||||||
DATA MANAGEMENT PRODUCTS ($M) | 430 | 670 | 561 | 713 | 2,374 | 322 | 335 | 292 | 351 | 1,300 | 427 | 1,501 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 33.5 | % | 100.0 | % | 92.1 | % | 103.1 | % | 82.6 | % | -8.5 | % | -10.9 | % | -15.6 | % | -17.8 | % | -13.4 | % | 0.9 | % | -3.2 | % | ||||||||||||
Growth vs. prior quarter (%) | 22.5 | % | 55.8 | % | -16.3 | % | 27.1 | % | -24.6 | % | 4.0 | % | -12.8 | % | 20.2 | % | 23.4 | % | ||||||||||||||||||
SUPPORT SERVICES ($M) | 835 | 953 | 904 | 986 | 3,678 | 745 | 774 | 734 | 778 | 3,031 | 792 | 2,999 | ||||||||||||||||||||||||
Growth vs. prior year (%) | 12.1 | % | 23.1 | % | 23.2 | % | 26.7 | % | 21.3 | % | 1.9 | % | 3.9 | % | 0.4 | % | -1.8 | % | 1.1 | % | 4.9 | % | 5.5 | % | ||||||||||||
Growth vs. prior quarter (%) | 7.3 | % | 14.1 | % | -5.1 | % | 9.1 | % | -5.9 | % | 3.9 | % | -5.2 | % | 6.0 | % | 8.3 | % | ||||||||||||||||||
CLIENT SOLUTIONS & EDUCATIONAL SERVICES ($M) | 187 | 276 | 238 | 318 | 1,019 | 207 | 227 | 210 | 269 | 913 | 252 | 831 | ||||||||||||||||||||||||
Growth vs. prior year (%) | -9.7 | % | 21.6 | % | 13.3 | % | 18.2 | % | 11.6 | % | 21.1 | % | 14.1 | % | 0.5 | % | 6.7 | % | 9.9 | % | 12.5 | % | 4.3 | % | ||||||||||||
Growth vs. prior quarter (%) | -30.5 | % | 47.6 | % | -13.8 | % | 33.6 | % | -17.9 | % | 9.7 | % | -7.5 | % | 28.1 | % | 20.6 | % | ||||||||||||||||||
NET BOOKINGS, SUN ONLY ($M) | 2,413 | 3,018 | 2,680 | 3,376 | 11,487 | 2,453 | 2,976 | 2,536 | 3,078 | 11,043 | 3,179 | 11,314 | ||||||||||||||||||||||||
Growth vs. prior year (%) | -1.6 | % | 1.4 | % | 5.7 | % | 9.7 | % | 4.0 | % | -3.3 | % | -0.1 | % | -3.1 | % | -3.2 | % | -2.4 | % | 5.3 | % | 0.1 | % | ||||||||||||
Growth vs. prior quarter (%) | -21.6 | % | 25.1 | % | -11.2 | % | 26.0 | % | -22.8 | % | 21.3 | % | -14.8 | % | 21.4 | % | 21.5 | % | ||||||||||||||||||
PRODUCT BACKLOG, SUN ONLY ($M)* | 718 | 1,021 | 980 | 1,099 | 659 | 792 | 701 | 805 | 834 | |||||||||||||||||||||||||||
| * | Our product backlog includes orders for which customer-requested delivery is scheduled within six months and orders that have been specified by the customers for which products have been shipped but revenue has been deferred. |
BALANCE SHEETS
| FY 2006 | FY 2005 | FY 2004 Q4 | ||||||||||||||||
(in millions) | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||
| (Restated) | (Restated) | (Restated) | (Restated) | |||||||||||||||
CASH & ST INVESTMENTS | 2,501 | 2,449 | 2,872 | 4,065 | 3,520 | 3,639 | 3,135 | 3,396 | 3,601 | |||||||||
ACCOUNTS RECEIVABLE, NET | 2,087 | 2,289 | 2,301 | 2,702 | 1,730 | 1,840 | 2,020 | 2,231 | 2,339 | |||||||||
RAW MATERIALS | 82 | 95 | 49 | 68 | 71 | 64 | 75 | 48 | 82 | |||||||||
WORK IN PROCESS | 183 | 134 | 125 | 97 | 158 | 157 | 121 | 121 | 134 | |||||||||
FINISHED GOODS | 286 | 321 | 400 | 375 | 187 | 208 | 192 | 262 | 248 | |||||||||
TOTAL INVENTORIES | 551 | 550 | 574 | 540 | 416 | 429 | 388 | 431 | 464 | |||||||||
OTHER CURRENT ASSETS | 998 | 933 | 966 | 875 | 1,102 | 1,220 | 1,419 | 1,133 | 1,159 | |||||||||
TOTAL CURRENT ASSETS | 6,137 | 6,221 | 6,713 | 8,182 | 6,768 | 7,128 | 6,962 | 7,191 | 7,563 | |||||||||
PP&E, NET | 1,901 | 1,914 | 1,880 | 1,806 | 1,918 | 1,903 | 1,851 | 1,769 | 1,996 | |||||||||
GOODWILL | 2,466 | 2,472 | 2,487 | 2,569 | 406 | 406 | 441 | 441 | 406 | |||||||||
LT MARKETABLE DEBT SECURITIES | 2,032 | 1,827 | 1,557 | 783 | 3,913 | 3,825 | 4,222 | 4,128 | 4,007 | |||||||||
OTHER NON-CURRENT ASSETS, NET | 1,938 | 1,874 | 1,733 | 1,586 | 804 | 774 | 704 | 661 | 833 | |||||||||
TOTAL ASSETS | 14,474 | 14,308 | 14,370 | 14,926 | 13,809 | 14,036 | 14,180 | 14,190 | 14,805 | |||||||||
SHORT TERM BORROWINGS | 512 | 508 | 505 | 503 | 0 | 0 | 0 | 0 | 257 | |||||||||
ACCOUNTS PAYABLE | 1,091 | 1,214 | 1,315 | 1,446 | 807 | 963 | 1,071 | 1,167 | 1,057 | |||||||||
ACCRUED LIABILITIES & OTHER | 2,147 | 1,905 | 1,918 | 2,223 | 2,108 | 2,049 | 2,090 | 1,951 | 2,199 | |||||||||
DEFERRED REVENUES | 1,507 | 1,541 | 1,684 | 1,988 | 1,346 | 1,313 | 1,399 | 1,648 | 1,617 | |||||||||
TOTAL CURRENT LIABILITIES | 5,257 | 5,168 | 5,422 | 6,160 | 4,261 | 4,325 | 4,560 | 4,766 | 5,130 | |||||||||
LT DEBT | 603 | 593 | 585 | 575 | 1,163 | 1,145 | 1,116 | 1,123 | 1,175 | |||||||||
LT DEFERRED REVENUES | 549 | 469 | 472 | 546 | 524 | 519 | 519 | 544 | 557 | |||||||||
OTHER NON-CURRENT OBLIGATIONS | 1,410 | 1,585 | 1,504 | 1,301 | 1,504 | 1,482 | 1,429 | 1,083 | 1,460 | |||||||||
STOCKHOLDERS’ EQUITY | 6,655 | 6,493 | 6,387 | 6,344 | 6,357 | 6,565 | 6,556 | 6,674 | 6,483 | |||||||||
TOTAL LIABILITIES & SE | 14,474 | 14,308 | 14,370 | 14,926 | 13,809 | 14,036 | 14,180 | 14,190 | 14,805 | |||||||||
CASH FLOW
| Q1 | Q2 | Q3 | Q4 | FY06 | Q1 | Q2 | Q3 | Q4 | FY05 | Q4 | FY04 | |||||||||||||||||||||
OPERATING ACTIVITIES | 224 | (191 | ) | 197 | 410 | 640 | 124 | 52 | (2 | ) | 195 | 369 | 2,172 | 2,226 | ||||||||||||||||||
INVESTING ACTIVITIES | (770 | ) | (214 | ) | 217 | 1,346 | 579 | 157 | (475 | ) | (345 | ) | 238 | (425 | ) | (1,604 | ) | (2,311 | ) | |||||||||||||
FINANCING ACTIVITIES | 3 | 90 | 34 | 172 | 299 | (235 | ) | 99 | 18 | 84 | (34 | ) | 67 | 211 |
KEY METRICS
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q4 | |||||||||||||||||||
INVENTORY TURNS (hist.) | 13.4 | 13.7 | 10.8 | 15.3 | 15.9 | 14.7 | 15.0 | 14.5 | 15.2 | ||||||||||||||||||
INVENTORY TURNS-PRODUCT ONLY (hist.) | 8.6 | 8.8 | 6.9 | 9.9 | 10.3 | 9.4 | 9.7 | 9.3 | 9.8 | ||||||||||||||||||
DAYS SALES OUTSTANDING | 69 | 62 | 65 | 64 | 59 | 58 | 69 | 68 | 68 | ||||||||||||||||||
DAYS PAYABLES OUTSTANDING | (64 | ) | (57 | ) | (65 | ) | (59 | ) | (47 | ) | (53 | ) | (63 | ) | (60 | ) | (50 | ) | |||||||||
DAYS OF SUPPLY ON HAND | 33 | 26 | 29 | 22 | 24 | 23 | 23 | 22 | 22 | ||||||||||||||||||
L-T DEBT/EQUITY (%) | 9.1 | % | 9.1 | % | 9.2 | % | 9.1 | % | 18.3 | % | 17.4 | % | 17.0 | % | 16.8 | % | 18.1 | % | |||||||||
ROE (12 mo. avg.)(%) | -1.5 | % | -4.9 | % | -7.8 | % | -13.4 | % | -3.8 | % | -1.6 | % | 9.6 | % | -1.6 | % | -6.3 | % | |||||||||
BOOK VALUE PER SHARE ($) | 1.95 | 1.89 | 1.84 | 1.81 | 1.90 | 1.95 | 1.94 | 1.96 | 1.94 | ||||||||||||||||||
PRICE PER SHARE @ CLOSE | 3.87 | 4.36 | 4.97 | 4.15 | 4.13 | 5.44 | 4.03 | 3.73 | 4.33 | ||||||||||||||||||
ROA (12 mo. avg.)(%) | -0.7 | % | -2.3 | % | -3.6 | % | -6.0 | % | -1.7 | % | -0.7 | % | 4.4 | % | -0.8 | % | -2.9 | % | |||||||||
DEPREC. & AMORT. ($M) | 189 | 265 | 228 | 224 | 187 | 191 | 191 | 198 | 231 | ||||||||||||||||||
CAPITAL INVESTMENTS ($M) | 48 | 82 | 63 | 122 | 56 | 85 | 58 | 58 | 60 | ||||||||||||||||||
SPARES INVESTMENTS ($M) | 20 | 20 | 13 | 20 | 12 | 30 | 26 | 22 | 15 | ||||||||||||||||||
NUMBER OF EMPLOYEES | 38,588 | 38,802 | 38,312 | 38,061 | 32,449 | 31,855 | 31,999 | 31,117 | 34,962 | ||||||||||||||||||
REV. PER EMP. (12 mo.)($K) | 289.4 | 300.6 | 314.8 | 343.3 | 347.5 | 352.5 | 350.2 | 355.8 | 319.9 | ||||||||||||||||||
GM PER EMP. (12mo.)($K) | 122.3 | 127.3 | 134.6 | 147.9 | 140.9 | 143.2 | 143.2 | 147.5 | 129.2 | ||||||||||||||||||
OP EXP AS % OF REV (12mo.) | 45.8 | % | 47.3 | % | 48.1 | % | 49.7 | % | 50.0 | % | 49.3 | % | 46.9 | % | 44.9 | % | 51.0 | % | |||||||||
NET INCOME (LOSS) PER EMP. (12mo.)($K) | (2.5 | ) | (8.4 | ) | (13.2 | ) | (22.7 | ) | (7.2 | ) | (3.2 | ) | 19.5 | (3.4 | ) | (11.1 | ) |
The information above has been restated to reflect the adjustments that are further discussed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2005, filed with the SEC on September 13, 2005.
SUN MICROSYSTEMS, INC.
OPERATIONS ANALYSIS – CONSOLIDATED (UNAUDITED)
NON-GAAP CALCULATION OF NET INCOME (LOSS) EXCLUDING SPECIAL ITEMS
| FY 2006 | FY 2005 | FY 2004 | ||||||||||||||||||||||||||||||||||
(in millions except | Q1 | Q2 | Q3 | Q4 | FY06 | Q1 | Q2 | Q3* | Q4*** | FY05* | Q4 | FY04 | ||||||||||||||||||||||||
| (Restated) | (Restated) | (Restated) | (Restated) | |||||||||||||||||||||||||||||||||
GAAP net income (loss)****, ***** | (123 | ) | (223 | ) | (217 | ) | (301 | ) | (864 | ) | (133 | ) | 4 | (28 | ) | 50 | (107 | ) | 780 | (388 | ) | |||||||||||||||
Purchased in-process research and development | 60 | 0 | 0 | 0 | 60 | 0 | 0 | 0 | 0 | 0 | 69 | 70 | ||||||||||||||||||||||||
Restructuring charges | 12 | 10 | 36 | 228 | 286 | 108 | 24 | 44 | 86 | 262 | 150 | 344 | ||||||||||||||||||||||||
Loss (gain) on equity investments, net | (13 | ) | (14 | ) | (4 | ) | 4 | (27 | ) | 4 | (9 | ) | (2 | ) | 1 | (6 | ) | 6 | 64 | |||||||||||||||||
Impairment expense | 0 | 0 | 0 | 70 | 70 | 0 | 0 | 0 | 0 | 0 | 49 | 49 | ||||||||||||||||||||||||
Settlement income | 0 | 0 | 0 | (54 | ) | (54 | ) | 0 | 0 | (54 | ) | 0 | (54 | ) | (1,597 | ) | (1,597 | ) | ||||||||||||||||||
Settlement of litigation** | 0 | 0 | 0 | 0 | 0 | 55 | 0 | 0 | 0 | 55 | 0 | 0 | ||||||||||||||||||||||||
Valuation allowance on deferred tax assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (34 | ) | 0 | (34 | ) | 0 | 300 | ||||||||||||||||||||||
Related tax effects | (4 | ) | (3 | ) | (4 | ) | (8 | ) | (19 | ) | (7 | ) | (6 | ) | (7 | ) | (6 | ) | (26 | ) | 367 | 367 | ||||||||||||||
Net income (loss) excluding special items | (68 | ) | (230 | ) | (189 | ) | (61 | ) | (548 | ) | 27 | 13 | (81 | ) | 131 | 90 | (176 | ) | (791 | ) | ||||||||||||||||
Growth vs. prior year (%) | -351.9 | % | -1869.2 | % | 133.3 | % | -146.6 | % | -708.9 | % | 110.3 | % | 113.0 | % | 68.1 | % | 174.4 | % | 111.4 | % | -355.1 | % | -6691.7 | % | ||||||||||||
EPS (Diluted) excluding special items | (0.02 | ) | (0.07 | ) | (0.06 | ) | (0.02 | ) | (0.16 | ) | 0.01 | 0.00 | (0.02 | ) | 0.04 | 0.03 | (0.05 | ) | (0.24 | ) | ||||||||||||||||
Growth vs. prior year (%) | -300.0 | % | -100.0 | % | -100.0 | % | -150.0 | % | -633.3 | % | 112.5 | % | 100.0 | % | 75.0 | % | 180.0 | % | 112.5 | % | -350.0 | % | -100.0 | % | ||||||||||||
SHARES (CSE)(Diluted) | 3,407 | 3,424 | 3,443 | 3,475 | 3,437 | 3,356 | 3,400 | 3,376 | 3,392 | 3,368 | 3,327 | 3,277 | ||||||||||||||||||||||||
OUTSTANDING SHARES | 3,409 | 3,458 | 3,470 | 3,505 | 3,505 | 3,344 | 3,375 | 3,381 | 3,408 | 3,408 | 3,336 | 3,336 | ||||||||||||||||||||||||
| * | The non-GAAP calculation of Net income (loss) excluding special items for the three month period ended March 27, 2005 and year ended June 30, 2005 includes a $69 million benefit for the impact of the change in Dutch withholding tax legislation which was effected in the third quarter of fiscal 2005 and a $213 million benefit arising from adjustments to our income tax reserves resulting from the conclusion of a U.S. and foreign income tax audit. |
| ** | Included in Cost of sales – products |
| *** | The non-GAAP calculation of net income excluding special items for the three months ended June 30, 2005 includes a $213 million benefit arising from adjustments to our income tax reserves resulting from the conclusion of a U.S. and foreign income tax audit. |
| **** | Net loss for the three months ended June 30, 2006, three months ended March 26, 2006, three months ended December 25, 2005 and three months ended September 25, 2005 included $63 million, $57 million, $55 million and $50 million of stock-based compensation expense or approximately $0.02 per share, $0.02 per share, $0.02 per share and $0.01 per share, respectively. |
| ***** | Net loss for the three months ended June 30, 2006, three months ended March 26, 2006, three month ended December 25, 2005 and three months ended September 25, 2005 included $86 million, $145 million and $122 million of purchase price accounting adjustments and intangible asset amortization relating to our recent acquisitions or approximately 0.02 per share, $0.03 per share, $0.04 per share and $0.04 per share, respectively. |
The information above has been restated to reflect the adjustments that are further discussed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2005, filed with the SEC on September 13, 2005.