Sun results for the second quarter, which
ended December 26, 1999:
- Q2 revenues were $3.554B, up 27%
compared with Q2 of fiscal 1999
- Q2 net income was $353 million, up 30%
compared with last year's Q2 net income of $273 million
(excluding acquisition-related charges for fiscal year 1999).
- Q2 earnings per share was $.21, an increase of 24% over the
corresponding period a year ago (excluding acquisition-related charges
for fiscal year 1999).
For the first six months of fiscal 2000, Sun reported revenues of
$6.699B, up 26% over the corresponding period a year ago.
Net income was $629M, up 34% over the same period a year
earlier (excluding the acquisition-related charges for fiscal years
1999 and 2000). Earnings per share, excluding these charges, was $.38,
an increase of 27% from the previous year's results. Including
acquisition-related charges, net income was $626M and earnings
per share totalled $.37 for the first six months of fiscal year 2000.
All references to earnings per share set forth in this article
are diluted earnings per share and reflect Sun's recent two-for-one
stock split which was paid on December 7, 1999. In addition, effective
October 19, 1999, Sun completed its merger with Forte Software, Inc.
which was accounted for as a pooling of interests. Accordingly, all
prior periods have been restated in accordance with GAAP to reflect
Forte's historical results as if the merger had occurred at the
beginning of the earliest period presented.
"Sun continues to capture market share as we set the agenda in the "dot
com" era. There are lots of choices out there, and its becoming clear
that Sun is being viewed as a "category" player in the networking
space. Customers racing to "dot com" their businesses for competitive
advantage seem to agree, as they vote with their pocketbooks and their
commitment," said Scott McNealy, Chief Executive Officer of Sun
Microsystems. "Our recently announced alliances with Lucent, Cisco,
Enron, Vodaphone and Digital Island clearly indicate that Sun is one of
the preeminent vendors providing products and services for the Internet
McNealy concluded, "Sun remains focused on building the world's best
network computing products, investing about $1.5 billion dollars
annually in its core technologies, SPARCTM, SolarisTM, JiroTM,
JavaTM, and JiniTM, which continue to fuel the Internet and service
provider explosion. In addition, the next version of full 64-bit
Operating Systems, SolarisTM 8, will be introduced this month. These
investments enable Sun to create a competitive advantage in the
Michael E. Lehman, Sun's Vice President of Corporate Resources and
Chief Financial Officer, commented, "We are very pleased to have set an
all time record for quarterly revenues this early in the fiscal year.
During the quarter, we experienced particularly strong demand for our
workgroup servers, high-end servers and services. This reflects the
increasing confidence that customers have in Sun's ability to provide
products, service and support on a worldwide basis."
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