Java IoT Authors: Liz McMillan, Elizabeth White, Yeshim Deniz, Zakia Bouachraoui, Pat Romanski

Related Topics: Java IoT

Java IoT: News Item

Sun Microsystems Reports Results for the Third Quarter Fiscal 2009

Revenues for the third quarter of fiscal 2009 were $2.614 billion, as compared with $3.266 billion for the third quarter of fisc

Sun Microsystems, Inc. (NASDAQ: JAVA) reported results today for its third quarter of fiscal 2009, which ended March 29, 2009.

Revenues for the third quarter of fiscal 2009 were $2.614 billion, as compared with $3.266 billion for the third quarter of fiscal 2008, and compared with $3.220 billion for the second quarter of fiscal 2009. Total gross margin as a percent of revenues was 42.7, a decrease of 2.2 percentage points as compared with the third quarter of fiscal 2008 and an increase of 0.8 percentage points as compared with the second quarter of fiscal 2009.

Net loss for the third quarter of fiscal 2009 on a GAAP basis was $201 million, or $(0.27) per share on a diluted basis, as compared with a net loss of $34 million, or $(0.04) per share, for the third quarter of fiscal 2008, and compared with a net loss of $209 million, or $(0.28) per share, for the second quarter of fiscal 2009. GAAP net loss per share includes a restructuring charge of $46 million primarily related to the restructuring announcement of November 2008.

On a non-GAAP basis, net loss for the third quarter of fiscal 2009 was $52 million, or $(0.07) per share on a diluted basis, as compared with a non-GAAP net income of $132 million, or $0.17 per share, for the third quarter of fiscal 2008, and compared with a non-GAAP net income of $114 million, or $0.15 per share, for the second quarter of fiscal 2009. Non-GAAP net income per share excludes purchased in-process research and development, amortization of acquisition-related intangibles, stock-based compensation, restructuring and related impairment of long-lived assets, net gain or loss on equity investments and the tax effect of these non-GAAP adjustments.

Sun ended the quarter with a cash and marketable debt securities balance of $2.990 billion and generated cash flow from operations for the third quarter of fiscal 2009 of $178 million – the third consecutive quarter of positive cash flow from operations in fiscal 2009, and following upon 19 consecutive years of positive cash flow from operations.

Third Quarter Highlights

  • Grew billings nearly 4 percent year-over-year in combined key growth categories of Total Software, Open Storage, SolarisTM-based SPARC® CMT Servers, and X64 Servers.
    • Combined key growth categories accounted for 40 percent of total billings in the third quarter of fiscal 2009 versus 30 percent in the third quarter of fiscal 2008.
    • Total Software billings grew 28 percent year-over-year.
    • Open Storage billings grew 63 percent year-over-year.
    • Solaris-based SPARC CMT Servers billings grew 3 percent year-over-year.
  • Reduced R&D and SG&A expenses nearly 15 percent year-over-year.

Sun will not be hosting a conference call in conjunction with these results. For more information or to access the financial results, please visit www.sun.com/investors.

To supplement Sun's preliminary financial results presented in accordance with GAAP, Sun provides non-GAAP net income and non-GAAP net income per share data on a diluted basis. The presentation of these non-GAAP financial measures should be considered in addition to Sun's GAAP results and are 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 these non-GAAP financial measures provide 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 these non-GAAP financial measures in assessing Sun's performance. These non-GAAP financial measures also facilitate comparisons to Sun's historical performance and its competitors' operating results. Sun includes these non-GAAP financial measures because management believes they are 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 measures are reconciled to comparable GAAP measures in the table entitled “Calculation of Non-GAAP Net Income (Loss)” following the text of this press release.

About Sun Microsystems, Inc.

Sun Microsystems develops the technologies that power the global marketplace. Guided by a singular vision -- "The Network is the ComputerTM" -- 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.

Sun, Sun Microsystems, the Sun logo, Java, Solaris, 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. All SPARC trademarks are used under license and are trademarks or registered trademarks of SPARC International, Inc. in the United States and other countries. Producers bearing SPARC trademarks are based upon an architecture developed by Sun Microsystems, Inc.

(in millions, except per share amounts)

Three Months Ended


Nine Months Ended

March 29,   March 30, March 29,   March 30,


2008 2009 2008
Net revenues:
Products $ 1,519 $ 2,003 $ 5,222 $ 6,232
Services   1,095     1,263     3,602     3,868
Total net revenues 2,614 3,266 8,824 10,100
Cost of sales:
Cost of sales-products 877 1,106 3,200 3,296
Cost of sales-services   621     692     1,957     2,022
Total cost of sales   1,498     1,798     5,157     5,318
Gross margin 1,116 1,468 3,667 4,782
Operating expenses:
Research and development 393 457 1,227 1,366
Selling, general and administrative 843 989 2,679 2,923
Restructuring charges and related impairment of long-lived assets 46 14 331 159
Purchased in-process research and development 3 24 3 25
Impairment of goodwill   -     -     1,445     -
Total operating expenses   1,285     1,484     5,685     4,473
Operating income (loss) (169 ) (16 ) (2,018 ) 309
Gain on equity investments, net 3 - 8 22
Interest and other income (expense), net   (2 )   34     (3 )   145
Income (loss) before income taxes (168 ) 18 (2,013 ) 476
Provision for income taxes   33     52     74     161
Net income (loss) $ (201 ) $ (34 ) $ (2,087 ) $ 315
Net income (loss) per common share-basic $ (0.27 ) $ (0.04 ) $ (2.80 ) $ 0.38
Net income (loss) per common share-diluted $ (0.27 ) $ (0.04 ) $ (2.80 ) $ 0.38
Shares used in the calculation of net income (loss) per common share-basic   745     785     746     821

Shares used in the calculation of net income (loss) per common share-diluted

  745     785     746     837
(in millions)


March 29,


June 30,







Current assets:
Cash and cash equivalents $ 1,569 $ 2,272
Short-term marketable debt securities 1,134 429
Accounts receivable, net 2,265 3,019
Inventories 561 680
Deferred and prepaid tax assets 185 216
Prepaid expenses and other current assets, net   1,036     1,218  
Total current assets 6,750 7,834
Property, plant and equipment, net 1,670 1,611
Long-term marketable debt securities 287 609
Goodwill 1,740 3,215
Other acquisition-related intangible assets, net 357 565
Other non-current assets, net   458     506  
$ 11,262   $ 14,340  
Current liabilities:
Accounts payable $ 1,049 $ 1,387
Accrued payroll-related liabilities 595 734
Accrued liabilities and other 1,142 1,105
Deferred revenues 2,190 2,236
Warranty reserve 160 206
Current portion of long-term debt   562     -  
Total current liabilities 5,698 5,668
Long-term debt 695 1,265
Long-term deferred revenues 548 683
Other non-current obligations 970 1,136
Stockholders’ equity:
Common stock and additional paid-in-capital 7,541 7,391
Treasury stock, at cost (2,680 ) (2,726 )
Retained earnings (accumulated deficit) (1,819 ) 430
Accumulated other comprehensive income   309     493  
Total stockholders’ equity   3,351     5,588  
$ 11,262   $ 14,340  
(1) Derived from audited financial statements.
(unaudited, in millions)

Nine Months Ended

March 29,   March 30,
2009 2008
Cash flows from operating activities:
Net income (loss) $ (2,087 ) $ 315
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 321 354
Amortization of acquisition-related intangible assets 224 224
Stock-based compensation expense 150 157
Purchased in-process research and development 3 25
Impairment of goodwill 1,445 -
(Gain) loss on investments and other, net 23 (54 )
Deferred taxes 2 8
Changes in operating assets and liabilities:
Accounts receivable, net 752 603
Inventories 118 (205 )
Prepaid and other assets, net 177 (105 )
Accounts payable (341 ) (114 )
Other liabilities   (405 )   31  
Net cash provided by operating activities   382     1,239  
Cash flows from investing activities:
Decrease (increase) in restricted cash (19 ) 22
Purchases of marketable debt securities (1,535 ) (1,292 )
Proceeds from sales of marketable debt securities 423 1,404
Proceeds from maturities of marketable debt securities 684 764
Proceeds from sales of equity investments, net 7 25
Purchases of property, plant and equipment, net (404 ) (297 )
Payment for acquisitions, net of cash acquired   (55 )   (923 )
Net cash used in investing activities   (899 )   (297 )
Cash flows from financing activities:
Purchase of common stock under stock repurchase plans (130 ) (2,300 )
Proceeds from issuance of options and ESPP purchases, net 24 121
Principal payments on borrowings and other obligations   (12 )   (20 )
Net cash used in financing activities   (118 )   (2,199 )
Effect of changes in exchange rates on cash and cash equivalents   (68 )   -  
Net decrease in cash and cash equivalents (703 ) (1,257 )
Cash and cash equivalents, beginning of period   2,272     3,620  
Cash and cash equivalents, end of period $ 1,569   $ 2,363  
(in millions, except per share amounts)


Three Months Ended

March 29,   March 30,   December 28,




Calculation of non-GAAP net income (loss):
GAAP loss $ (201 ) $ (34 ) $ (209 )
Purchased in-process research and development 3 24 -
Amortization of acquisition related intangibles 72 76 72
Stock-based compensation 49 57 52
Restructuring and related impairment of long-lived assets 46 14 222
(Gain) loss on equity investments, net (3 ) - 3
Tax effect of non-GAAP adjustments   (18 )   (5 )   (26 )
Non-GAAP net income (loss) $ (52 ) $ 132   $ 114  
Diluted non-GAAP net income (loss) per share $ (0.07 ) $ 0.17   $ 0.15  
Shares used in the calculation of non-GAAP net income (loss) per common share – diluted   745     797     746  


More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
@CloudEXPO and @ExpoDX, two of the most influential technology events in the world, have hosted hundreds of sponsors and exhibitors since our launch 10 years ago. @CloudEXPO and @ExpoDX New York and Silicon Valley provide a full year of face-to-face marketing opportunities for your company. Each sponsorship and exhibit package comes with pre and post-show marketing programs. By sponsoring and exhibiting in New York and Silicon Valley, you reach a full complement of decision makers and buyers in ...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessio...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settl...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, compared the Jevons Paradox to modern-day enterprise IT, examin...
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
LogRocket helps product teams develop better experiences for users by recording videos of user sessions with logs and network data. It identifies UX problems and reveals the root cause of every bug. LogRocket presents impactful errors on a website, and how to reproduce it. With LogRocket, users can replay problems.
Data Theorem is a leading provider of modern application security. Its core mission is to analyze and secure any modern application anytime, anywhere. The Data Theorem Analyzer Engine continuously scans APIs and mobile applications in search of security flaws and data privacy gaps. Data Theorem products help organizations build safer applications that maximize data security and brand protection. The company has detected more than 300 million application eavesdropping incidents and currently secu...