System News
Record Q2 for Sun
Revenue up 27%, Income up 30%
January 20, 2000,
Volume 21, Issue 1

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 age."

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 marketplace."

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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