Sun Microsystems' fiscal fourth-quarter revenue falls 13 per cent

SAN JOSE, Calif., Jul 22, 2003 (The Canadian Press via COMTEX) -- Sun
Microsystems Inc.'s fiscal fourth-quarter sales dropped 13 per cent and its
earnings failed to meet Wall Street's expectations Tuesday as the server and
software maker continued to struggle with weak demand.

For the three months ended June 30, Sun earned $12 million US, or break-even on
a per-share basis, compared with a profit of $61 million, or two cents per
share, in the same period a year ago. Sales were $2.98 billion, down from $3.42
billion a year ago.

Analysts were expecting Sun to post a profit of two cents per share on sales of
$3.07 billion, according to a survey by Thomson First Call.

Sun said it generated $335 million from operating activities during the fourth
quarter, and its balance of cash and marketable securities was more than $5.7

"We enter the new fiscal year with an intense focus toward growing revenue,
improving profitability and maintaining positive cash flow from operations,"
said Scott McNealy, Sun's chief executive.

For the year, Sun lost $2.38 billion, or 75 cents per share, on sales of $11.43
billion. Last year, it lost $587 million, or 18 cents per share, on sales of
$12.5 billion. The net loss for fiscal 2003 includes a non-cash impairment
expense of $2.13 billion.