Sun Microsystems Q4 revenues down 4.3 p.c.

BANGALORE: Sun Microsystems, Inc. reported results today for its fiscal fourth quarter ended June 30.

Revenues for the fourth quarter were $2.975 billion, a decrease of 4.3 percent compared to $3.110 billion for the fourth quarter of fiscal 2004. Total gross margin as a percent of revenues was 41.4 percent, an increase of 2.0 percentage points as compared with the fourth quarter of fiscal 2004.

Net income for the fourth quarter of fiscal 2005 on a GAAP basis was $121 million or a net income of $0.04 per share compared with a net income of $783 million or a net income of $0.23 per share for the fourth quarter last year.

The fiscal 2004 fourth quarter results included $1.6 billion of other income related to a legal settlement with Microsoft.

Sun Microsystems India Pvt. Ltd grows 28 p.c.

Sun Microsystems India Pvt. Ltd. marked a growth of 28 percent for the financial year ending June 30.

Bhaskar Pramanik, Managing Director, Sun Microsystems India, said, “FY 05 was a year of stabilized revenues and improved earnings for Sun globally”. He further added: “Sun India continues to outperform against industry and competition. We added 164 new customers and saw tremendous growth in some of our businesses like X64, Storage and Services.”

Fiscal 2005 Q4 net income included a net tax benefit of $190 million. Included in this amount was a tax expense of $82 million on income generated in certain foreign jurisdictions and adjustments for the difference between estimated amounts recorded and actual liabilities resulting from the filing of prior periods' tax returns.

This expense was more than offset by a $249 million tax benefit arising from adjustments to our income tax reserves resulting from the June 2005 conclusion of both a previously disclosed US income tax audit and a foreign income tax audit, and a $23 million net beneficial correction to the valuation allowance on deferred tax assets and prior years' state and foreign tax provisions.

For the full 2005 fiscal year, Sun reported revenues of $11.071 billion, a decline of 1.0 percent compared to $11.185 billion for the full 2004 fiscal year. Total gross margin as a percent of revenues was 41.5 percent, an increase of 1.1 percentage points as compared with the 2004 fiscal year. The net loss for fiscal year 2005 was $11 million or a net loss of $0.00 per share as compared with a net loss of $388 million or a net loss of $0.12 per share for the 2004 fiscal year.