Sun Microsystems Reports Preliminary Results for Fourth Quarter Fiscal Year 2008
2008-07-15 15:00:00
SANTA CLARA, Calif.–(EMWNews)–Sun Microsystems, Inc. (NASDAQ: JAVA) reported preliminary results today
for its fourth quarter of fiscal 2008, which ended June 30, 2008.
Sun expects to report revenues for the fourth quarter of fiscal 2008 in
the range of $3.725 to $3.800 billion, as compared with $3.835 billion
for the fourth quarter of fiscal 2007. Total gross margin as a percent
of revenues for the fourth quarter of fiscal 2008 is expected to be in
the range of 44 to 45 percent.
Sun anticipates reporting GAAP net income per diluted share for the
fourth quarter of fiscal 2008 in the range of $0.05 to $0.15. GAAP net
income per diluted share includes a restructuring charge of
approximately $100 million. On a non-GAAP basis, Sun expects to report
net income per diluted share in the range of $0.25 to $0.35. Non-GAAP
net income per diluted share excludes purchased in-process research and
development, amortization of acquisition-related intangibles,
stock-based compensation expense, restructuring charges and related
impairment of long-lived assets, gain or loss on equity investments,
settlement income and the related income tax effects of non-GAAP
exclusions.
“In these difficult economic times, we continue to see customers across
the world look to open software and hardware as a source of savings, and
feel Sun is well positioned with our most robust line ever of server,
storage, software and service offerings,” said
Jonathan Schwartz, CEO of Sun Microsystems.
Sun will report its complete fourth quarter and full fiscal year 2008
financial results on Friday, August 1, 2008. The company will host a
conference call on August 1, 2008 to review the complete financial
results beginning at 5:00 a.m. PT / 8:00 a.m. ET. The general public can
access the financial results and listen to the call via Sun’s Investor
Relations website at www.sun.com/investors.
About Sun Microsystems, Inc.
Sun Microsystems develops the technologies that power the global
marketplace. Guided by a singular vision — “The Network is the
Computer” — Sun drives network participation through shared innovation,
community development and open source leadership. Sun can be found in
more than 100 countries and on the Web at http://sun.com.
This press release contains forward-looking statements regarding the
future results and performance of Sun Microsystems, Inc., including
statements regarding Sun’s estimated revenues, total gross margin, GAAP
and non-GAAP net income per diluted share and restructuring charge for
the fourth quarter of fiscal 2008 and statements regarding industry
trends, customer preferences and Sun’s position. These forward-looking
statements involve risks and uncertainties and actual results could
differ materially from those predicted in any such forward-looking
statements. Sun’s preliminary results announced in this press release
are based on preliminary information about the fourth quarter of fiscal
2008 and are subject to revision. Although the quarter is now completed,
Sun is still in the early stages of its standard financial reporting
closing procedures. Accordingly, as Sun completes its normal quarter and
year-end closing and auditing processes, actual results could differ
materially from these preliminary estimates. Factors that could cause
Sun’s actual results to differ materially from those contained in such
forward-looking statements include: inaccurate data or assumptions;
unforeseen expenses; changes in estimates or judgments related to tax
liabilities; potential goodwill impairments; potential litigation, bad
debts or other contingencies; facts or circumstances affecting the
application of Sun’s critical accounting policies, including revenue
recognition; risks associated with developing, designing, manufacturing
and distributing new products; lack of success in technological
advancements; pricing pressures; lack of customer acceptance and
implementation of new products and technologies; the possibility of
errors or defects in new products; a material acquisition, restructuring
or other event that results in significant charges; competition; adverse
business conditions; failure to retain key employees; the cancellation
or delay of projects; Sun’s 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 Sun’s
international customers and operations; delays in product development;
Sun’s dependence on significant customers and specific industries; and
Sun’s dependence on channel partners. 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, 2007 and its Quarterly Reports on Form
10-Q for the fiscal quarters ended September 30, 2007, December 30, 2007
and March 30, 2008. Sun assumes no obligation to, and does not currently
intend to, update these forward-looking statements.
To supplement Sun’s preliminary financial results presented in
accordance with GAAP, Sun provides non-GAAP net income per diluted share
data. The presentation of this non-GAAP financial measure 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 this non-GAAP financial measure provides meaningful
supplemental information regarding its performance by excluding certain
gains, losses and charges that may not be indicative of Sun’s core
business operating results. Sun believes that both management and
investors benefit from referring to this non-GAAP financial measure in
assessing Sun’s performance. This non-GAAP financial measure also
facilitates comparisons to Sun’s historical performance and its
competitors’ operating results. Sun includes this non-GAAP financial
measure because management believes it is 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 net income per diluted share ($0.25 to $0.35) is equal
to GAAP net income per diluted share ($0.05 to $0.15) as adjusted to
exclude purchased in-process research and development, amortization of
acquisition related intangibles, stock-based compensation expense,
restructuring charges and related impairment of long-lived assets, gain
or loss on equity investments, settlement income and the related income
tax effects of non-GAAP exclusions (an aggregate adjustment of $0.20 per
diluted share).
Sun, Sun Microsystems, the Sun logo, Java, and The Network Is The
Computer are trademarks or registered trademarks of Sun Microsystems,
Inc. or its subsidiaries in the United States and other countries.
Sun Microsystems, Inc. Rawlinson, 650-786-6933 (Press) Engle, 415-294-4368 (Industry Analyst) |
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