Archive | July, 2004

Sun Also Unveils Java Enterprise System Promotion For Sun Fire V20z AMD Opteron-Based Server

In a move to further expand customer choice, Sun Microsystems, Inc. (Nasdaq: SUNW) today announced that its business model for the Sun Java Enterprise System will be extended to third-party operating systems and hardware platforms. Currently available on the secure, enterprise-class Solaris Operating System (OS) for SPARC, AMD Opteron and Xeon systems, as well as Linux, Sun will add support for the HP-UX operating system on the PA-Risc architecture and the Microsoft Windows Operating System for x86 based hardware, including AMD Opteron-based systems, beginning next year. Customers will now be able to take advantage of the simple, predictable and affordable approach to reducing cost and complexity that the Java Enterprise System provides on hardware platforms of their choice.

Further extending the value of the Java Enterprise System, Sun today also announced a special systems promotion, under which qualified customers who purchase the Java Enterprise System will receive a Sun Fire V20z AMD Opteron processor-based server (a nearly $4,000 value), the Solaris 9 Operating System (OS) and one year of SunSpectrum Silver(sm) support all for $100 per employee per year. Companies will also be upgraded to Solaris 10 OS at no additional cost, giving them access to new technologies like dynamic tracing, dynamic file system, predictive self healing and N1 Grid Containers, as well as optimized 64-bit Solaris support for Opteron-based systems. The Java Enterprise System enables enterprises to reduce the cost and complexity of running their mission critical software infrastructure, reuse and adapt the infrastructure for new services, and secure their businesses with identity-enabled services and applications. Additionally, the Sun Fire V20z included in this promotion is ideal for proof of concept, testing and development of solutions based on the Java Enterprise System running the Solaris 9 Operating System. For details on this special promotion and others, visit: http://wwws.sun.com/software/javaenterprisesystem/opteron/index.html

“With today’s announcements, Sun is opening up significant new opportunities for customers and partners, and giving them flexibility to mix and match systems to meet their technology needs, help reduce the costs and complexity associated with systems management and leverage Sun’s infinite right to use model,” said John Loiacono, executive vice president of software at Sun. “Sun is also delivering on its unified systems strategy with this new Java Enterprise System promotion, allowing customers to benefit from industry leading enterprise software on commodity hardware with extreme performance.”

“Extending the Java Enterprise System for deployment on non-Sun branded hardware, at no additional cost, injects the novel subscription pricing model and mid-tiers solution packaging approach into the server OEM space,” said Dana Gardner, Senior Analyst, Application Infrastructure and Software Platforms, Yankee Group. “The likely effect is that, as the costs-benefit analysis becomes clear, enterprise buyers will pull this up through the channel. And that will encourage server makers to offer it on their hardware, which further enhances the value chain reaction. The existing Java Enterprise System business model is steadily changing how companies evaluate and select infrastructure software. This announcement will spur wider examination of the benefits.”

Sun is also extending its special promotion for qualified small businesses through December 31, 2004. Under this promotion, companies who qualify and have less than 100 employees, will receive the Java Enterprise System software free of charge for one year. Sun is arming small businesses with the tools they need to build a solid and secure IT infrastructure, to develop and extend network services to users at no additional cost and focus on core business goals. For further information on this promotion, visit http://wwws.sun.com/software/javaenterprisesystem/programs/index.html

Availability

• The Java Enterprise System is available directly through Sun and Sun iForce(sm) partners on the Solaris and Linux operating systems for Sun and non-Sun SPARC, AMD Opteron and x86-based systems. Support for HP-UX on PA-Risc and Windows platforms is planned for the first quarter of the next calendar year, 2005.
• The systems promotion for the Java Enterprise System, Solaris OS, Sun Fire V20z AMD Opteron-based server and one year of SunSpectrum Silver support is available immediately through December 31, 2004.
• The Free Java Enterprise System software promotion to qualified companies with less than 100 employees is now extended through December 31, 2004.

About Java Enterprise System

Serious software made simple, the Java Enterprise System seamlessly integrates award-winning and market-leading enterprise network services that are needed by every organization to successfully build and deploy their own business critical applications. This complete standards-based software system is delivered as a single, pre-integrated entity on a predictable release cycle, at an affordable cost. Radically simplified customer pricing — $100 per employee per year (U.S. list price. All prices quoted are in U.S. dollars) — delivers the peace of mind CIOs need to focus on what they do best: leverage IT to achieve their business goals. The Java Enterprise System shared network services provides the following functionality and capabilities: Web and Application Services, Network Identity Services, Portal Services, Communication and Collaboration Services, Availability Services and end-to-end Security Services. For more information on the Java Enterprise System please visit: http://www.sun.com/software/javaenterprisesystem

About Sun Microsystems, Inc.

Since its inception in 1982, a singular vision — “The Network Is The Computer” — has propelled Sun Microsystems, Inc. (Nasdaq: SUNW) to its position as a leading provider of industrial-strength hardware, software and services that make the Net work. Sun can be found in more than 100 countries and on the World Wide Web at http://sun.com

Sun, Sun Microsystems, the Sun Logo, Sun Fire, SunSpectrum Silver, N1, Java, iForce, and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.

Sun Microsystems, Inc., (NASDAQ: SUNW) reported results today for its fiscal fourth quarter and full fiscal year, which ended June 30, 2004.

Revenues for the fourth quarter grew to $3.110 billion, an increase of 4.3 percent as compared with $2.982 billion for the fourth quarter of fiscal 2003. Total gross margin as a percent of revenues was 39.4 percent, a decrease of 4.3 percentage points as compared with the fourth quarter of fiscal 2003. Net income for the fourth quarter of fiscal 2004 was $795 million or $0.24 per share as compared with a net loss of $1.039 billion or a net loss of $0.32 per share for the fourth quarter of fiscal 2003.

Cash generated from operating activities was $2.172 billion for the quarter, and the balance of cash and marketable securities was $7.608 billion.

For the full 2004 fiscal year, Sun reported revenues of $11.185 billion, a decline of 2.2 percent as compared with $11.434 billion for the full 2003 fiscal year. Total gross margin as a percent of revenues was 40.4 percent, a decline of 2.8 percentage points as compared with the 2003 fiscal year. The net loss for fiscal year 2004 was $376 million or a net loss of $0.11 per share as compared with a net loss of $3.429 billion or a net loss of $1.07 per share for the 2003 fiscal year.

Results reported today include $1.6 billion of other income, and $350 million in deferred other income related to the Microsoft settlement. Sun has sought confirmation of certain aspects of its accounting relating to this settlement from the Securities and Exchange Commission. Financial results are pending final resolution of these matters.

Steve McGowan, Sun’s chief financial officer and executive vice president, corporate resources, said, “We’re pleased we grew revenue in fiscal Q4 based on consistent demand throughout the quarter across geographies and products. We’re also pleased that we generated $2.2 billion in cash from operations in fiscal 2004 and ended the year with a cash and marketable securities balance in excess of $7.6 billion. This marks the 15th consecutive fiscal year that Sun has generated positive cash flow from operations.”

“Delivering growth and preliminary profits in Q4 is a great way to end the year, with 46% server unit volume growth year-over-year and a sequential increase of 18%,” said Scott McNealy, chairman and chief executive officer, Sun Microsystems, Inc. “We enter the new fiscal year with a strong balance sheet, the strongest product and services portfolio in our history, and the largest developer and partner communities we’ve ever had. We’re delivering innovations based on some of the industry’s most coveted technologies, SolarisTM OS and JavaTM platform, running on industry standard SPARC®, AMD Opteron and Intel Xeon processors. In fiscal 2005, we’re focused on growing revenue and market share, generating cash, achieving sustained profitability, and rewarding long-term shareholders.”

“Let’s start putting some questions to rest,” said Jonathan Schwartz, president and chief operating officer, Sun Microsystems, Inc. “With the 74% sequential increase in Java Enterprise System subscribers, now totaling 303,000, we’ve made progress in both monetizing Java technology and driving long-term savings for customers. In addition, Solaris OS volumes and OEM support on industry standard AMD and Intel platforms grew at an accelerated pace, with a 25% increase in Solaris x86 registered licenses to almost 1.1 million and a 69% sequential increase in Software Express for Solaris x86. We are now unquestionably on the offensive, with powerful resources at our disposal, and an excellent product calendar.”

Sun has scheduled a conference call today to discuss its earnings for the fourth quarter and full fiscal year 2004 at 1:30 p.m. (PT), which is being broadcast live at www.sun.com/investors.

About Sun Microsystems, Inc.

Since its inception in 1982, a singular vision — “The Network Is The Computer” — has propelled Sun Microsystems, Inc. (Nasdaq: SUNW) to its position as a leading provider of industrial-strength hardware, software and services that make the Net work. Sun can be found in more than 100 countries and on the World Wide Web at http://sun.com

This news release contains forward-looking statements regarding the future results and performance of Sun Microsystems, Inc., including statements that Sun’s financial results are pending final resolution of accounting for the Microsoft settlement; that Sun is delivering innovations based on some of the industry’s most coveted technologies; that in fiscal 2005, Sun is focused on growing revenue and market share, generating cash, achieving sustained profitability and rewarding long-term shareholders; and that Sun is now unquestionably on the offensive. Such statements are just predictions and involve risks and uncertainties such that actual results and performance may differ materially. Factors that might cause such a difference include risks associated with how the company accounts for the Microsoft settlement; continued adverse macroeconomic conditions in the U.S. and internationally, including adverse business conditions in the specific markets for Sun’s products; lack of success in the timely development, production and acceptance of new products and services and in technical advancements; increased competition, and the failure to manage costs and improve operating efficiencies. These and other risks are detailed from time to time in Sun’s periodic reports that are filed with the Securities and Exchange Commission, including Sun’s annual report on Form 10-K for the fiscal year ended June 30, 2003 and quarterly reports on Form 10-Q for the fiscal quarters ended September 28, 2003, December 28, 2003, and March 28, 2004.

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.