Sun Microsystems, a well-known manufacturer of processors, server systems and other solutions, reported results for its fiscal fourth quarter and full fiscal year which ended
Revenues for the fourth quarter were $2.982 billion, a decline of 13% as compared with $3.420 billion for the fourth quarter of fiscal 2002. Total gross margin as a percent of revenues was 43.7%, an increase of 2.4 %age points as compared with the fourth quarter of fiscal 2002. Net income for the fourth quarter of fiscal 2003 was $12 million or zero cents per share compared with a net income of $61 million or a net income of $0.02 per share for the fourth quarter of fiscal 2002.
Cash generated from operating activities was $335 million for the quarter, and the balance of cash and marketable securities was over $5.7 billion.
For the full 2003 fiscal year, Sun reported revenues of $11.434 billion, a decline of 8.5% as compared with $12.496 billion for the full 2002 fiscal year. Total gross margin as a percentage of revenues was 43.2%, an increase of 3.9 points as compared with the 2002 fiscal year. The net loss for fiscal year 2003 was $2.378 billion or a net loss of $0.75 per share as compared with a net loss of $587 million or a net loss per share of $.18 for the 2002 fiscal year. The net loss for fiscal year 2003 included a non-cash impairment expense of $2.125 billion.
Steve McGowan, Sun’s Chief Financial Officer and Executive Vice President, Corporate Resources said that his company is pleased to announce that during fiscal 2003 operating costs were significantly reduced. Particularly, he announced costs reduction for SG&A by about $500 million. Capital expenditures and inventory were reduced by nearly $200 million, while maintaining R&D investment level at about $1 billion, McGowan added.
Scott McNealy, Sun’s Chairman, President, and CEO, said that next fiscal year Sun will focus toward revenue growth and cost reduction. I think, it is quite predictable course for company tjat made a loss of such size.