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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
July 22, 1999
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Date of Report (Date of earliest event reported):
SUN MICROSYSTEMS, INC.
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(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 0-15086 94-2805249
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
</TABLE>
<TABLE>
<S> <C>
901 San Antonio Road, Palo Alto, California 94303
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(Address of principal executive offices) (Zip Code)
</TABLE>
Registrant's telephone number, including area code: (650) 960-1300
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N/A
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On July 22, 1999, the Company reported its earnings for the quarter and
fiscal year ended June 30, 1999.
The Company's revenues for the fourth quarter were a record $3.515 billion,
up 22 percent compared with the fourth quarter of fiscal 1998. The Company's net
income for the fourth quarter reached an all time high of $395 million, compared
with last year's net income of $288 million (excluding a charge related to an
acquisition), up 37%. The Company's fourth quarter earnings per share was $.48,
compared with the previous year's earnings per share of $.37 (excluding the
charge related to an acquisition), an increase of 30 percent. Including the
charge related to an acquisition, the Company's net income and earnings per
share for the fourth quarter of fiscal year 1998 were reported as $273 million
and $.35, respectively.
For the full 1999 fiscal year, the Company reported revenues of $11.726
billion, up 20 percent over the prior year. The Company's net income for the
fiscal year was $1.157 billion, up 28 percent over the prior year (excluding
acquisition-related charges for fiscal years 1998 and 1999). The Company's
earnings per share for the year was $1.42, an increase of 23 percent from the
previous year's results (excluding acquisition-related charges for fiscal years
1998 and 1999). Including acquisition-related charges, the Company's net income
and earnings per share for the fiscal year 1999 were $1.031 billion and $1.27,
respectively.
All earnings per share amounts represent diluted earnings per share as
defined within Statement of Financial Accounting Standards No. 128.
Attached hereto as Exhibit 99.1 and incorporated herein by reference are
the Company's Condensed Consolidated Statements of Income, Pro Forma Condensed
Consolidated Statements of Income and Condensed Consolidated Balance Sheets for
the three months ended June 30, 1999 and the fiscal year ended June 30, 1999.
The operating results for any periods are not necessarily indicative of results
for an subsequent period.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Condensed Consolidated Financial Statements for
Registrant's fiscal quarter and year ended June 30, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: July 23, 1999 SUN MICROSYSTEMS, INC.
By: /s/ MICHAEL E. LEHMAN
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Michael E. Lehman
Vice President, Corporate Resources
and Chief Financial Officer
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INDEX TO EXHIBITS
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<CAPTION>
Exhibit
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<S> <C>
99.1 Condensed Consolidated Financial Statements for Registrant's fiscal
quarter and year ended June 30, 1999.
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EXHIBIT 99.1
SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED FISCAL YEAR ENDED
(unaudited)
-------------------------- --------------------------
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
-------------------------- --------------------------
<S> <C> <C> <C> <C>
Net revenues $3,514,645 $2,881,065 $11,726,297 $9,790,840
Costs and expenses:
Cost of sales 1,688,289 1,392,636 5,648,360 4,693,336
Research and development 352,611 279,166 1,262,517 1,013,782
Selling, general and administrative 909,912 792,715 3,172,955 2,777,264
In-process research and development 0 14,100 120,700 176,384
--------- --------- ---------- ---------
Total costs and expenses 2,950,812 2,478,617 10,204,532 8,660,766
--------- --------- ---------- ---------
Operating income 563,833 402,448 1,521,765 1,130,074
Interest income, net 25,908 12,958 83,924 46,092
--------- --------- ---------- ---------
Income before income taxes 589,741 415,406 1,605,689 1,176,166
Provision for income taxes 194,571 142,418 574,355 413,304
--------- --------- ---------- ---------
Net income $395,170 $272,988 $1,031,334 $762,862
========= ========= ========== =========
Net income per common
share - basic $0.51 $0.36 $1.35 $1.02
========= ========= ========== =========
Net income per common
share - diluted $0.48 $0.35 $1.27 $0.97
========= ========= ========== =========
Shares used in the calculation
of net income per share
- basic 773,900 748,898 765,853 747,456
========= ========= ========== =========
Shares used in the calculation
of net income per share
- diluted 827,695 788,256 814,241 788,548
========= ========= ========== =========
</TABLE>
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SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
<TABLE>
<CAPTION>
JUNE 30, JUNE 30,
1999 1998
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<S> <C> <C>
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $2,665,051 $1,298,452
Accounts receivable, net 2,286,911 1,845,765
Inventories 307,873 346,446
Other current assets 856,515 656,862
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Total current assets 6,116,350 4,147,525
Property, plant and equipment, net 1,608,921 1,300,612
Other assets, net 695,081 262,925
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$8,420,352 $5,711,062
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $1,646 $7,169
Accounts payable 753,838 495,603
Accrued liabilities 1,646,565 1,166,491
Income taxes payable 402,813 188,641
Other current liabilities 422,115 264,967
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Total current liabilities 3,226,977 2,122,871
Long-term debt and other obligations 381,595 74,563
Stockholders' equity 4,811,780 3,513,628
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$8,420,352 $5,711,062
========== ==========
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SUN MICROSYSTEMS, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME
EXCLUDING ACQUISITION-RELATED CHARGES
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED FISCAL YEAR ENDED
(unaudited) (unaudited)
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June 30, June 30, June 30, June 30,
1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Net revenues $3,514,645 $2,881,065 $11,726,297 $9,790,840
Costs and expenses:
Cost of sales 1,688,289 1,392,636 5,648,360 4,693,336
Research and development 352,611 279,166 1,262,517 1,013,782
Selling, general and administrative 909,912 792,715 3,172,955 2,777,264
---------- ---------- ----------- ----------
Total costs and expenses 2,950,812 2,464,517 10,083,832 8,484,382
---------- ---------- ----------- ----------
Operating income 563,833 416,548 1,642,465 1,306,458
Interest income, net 25,908 12,958 83,924 46,092
---------- ---------- ----------- ----------
Income before income taxes 589,741 429,506 1,726,389 1,352,550
Provision for income taxes 194,571 141,737 569,664 446,333
---------- ---------- ----------- ----------
Net income $395,170 $287,769 $1,156,725 $906,217
========== ========== =========== ==========
Net income per common
share - basic $0.51 $0.38 $1.51 $1.21
========== ========== =========== ==========
Net income per common
share - diluted $0.48 $0.37 $1.42 $1.15
========== ========== =========== ==========
Shares used in the calculation
of net income per share
- - basic 773,900 748,898 765,853 747,456
========== ========== =========== ==========
Shares used in the calculation
of net income per share
- - diluted 827,695 788,256 814,241 788,548
========== ========== =========== ==========
</TABLE>
Notes: The above pro forma amounts have been adjusted to eliminate
acquisition-related charges of $14.1 million, $120.7 million, and $176.4
million for in-process R&D and the related income tax effects for the
three months ended June 30, 1998, and the twelve months ended June 30,
1999 and 1998, respectively.
