Sun Quarterly Results
Sun has released results for its fiscal 2005 third quarter, which ended March 27th.
Revenues for the third quarter were $2.625 billion, a decrease of 1.0 percent as compared with $2.651 billion for the third quarter of fiscal 2004. Total gross margin as a percent of revenues was 41.3 percent, an increase of 1.0 percentage points as compared with the third quarter of fiscal 2004. Net loss for the third quarter of fiscal 2005 on a GAAP basis was $9 million or a net loss of $0.00 per share. This net loss included the favorable impact of $54 million in additional settlement income from Microsoft, a $69 million benefit related to the impact of a change in foreign withholding tax legislation, and a $23 million net beneficial correction to the valuation allowance on deferred tax assets and foreign tax provisions. This compared with a net loss of $760 million or a net loss of $0.23 per share for the third quarter of fiscal 2004.
Excluding a charge of $45 million for workforce and real estate restructuring, a $2 million gain on equity investments, $54 million in additional settlement income from Microsoft (recorded in other income), a $34 million beneficial correcting adjustment to the valuation allowance on deferred tax assets, and a tax benefit of $7 million for related tax effects, net loss for Q3 fiscal 2005 on a non-GAAP basis was $61 million or a net loss of $0.02 per share. This compared with a net loss, on a non-GAAP basis, in Q3 fiscal 2004 of $260 million or a net loss of $0.08 per share.
The cash and marketable debt securities balance at the end of the quarter was $7.357 billion.