..Financials
Headquarters
SUN
Revenue
Cost of Goods Sold
Gross Profit Margin
SG&A Expense
Operating Income
Total Net Income
2003E
$ 11,872
$ 8,228
41.8%
$ 3,362
$
39
$
106
2002
$ 12,496
$ 5,056
39.3%
$ 3,812
$ -1248
$ -587
2001
$ 18,250
$ 7,961
44.9%
$ 4,445
$ 1,311
$
927
Revenue by Product Line
Software
21%
HE-WS
4%
LE-WS
<$15K
3%
3rd Party
Elex
2%
Storage
18%
4150 Network Circle
Santa Clara, CA 95054
650-960-1300
http://www.sun.com/
Management
President & CEO - Scott McNealy
CIO - H. William Howard
EVP - Crawford Beveridge
EVP & CTO - Greg Papadopoulos
EVP, Software Group - Jonathan Schwartz
EVP, Sun Services - Patricia Sueltz
EVP, Marketing & Strategy - Mark Tolliver
EVP, WW Operations – Marissa Peterson
EVP, Enterprise Systems Products - Clark Masters
EVP, Network Storage Products – Mark Canepa
EVP, Volume System Products – Neil Knox
SVP, Marketing, Volume Sys Pdcts – Souheil Saliba
CTO, Volume System Products – Subodh Kapat
Servers
46%
Add-ons
3%
Competitive Profiles
Business
Sun Microsystems is a leading maker of UNIX-based, number-crunching workstation computers, storage
devices, and servers for powering corporate computer networks and Web sites. The company makes
computers that use its own microprocessors - SPARC and UNIX operating systems - Solaris. Sun revenues
had a meteoric rise during the dot.com boom followed by an equally shattering bust during 2001. Buffeted
between the high volume, low margin model of Dell and the computer services model adopted by IBM, Sun
vacillated in its finding a profitable niche of its own. Recently it has chosen to leverage its strengths in
software, rallying around Java (a programming language creating software that can run unchanged on any
kind of computer) and N1 - a set of computing utilities for Data Center automation and future software Orion to
run Grid Computing to form its core strategy. Sun sells to customers in the telecommunications, financial,
healthcare, retail, government, manufacturing, and education markets.
Industry & Competition
(for subscribed clients only)
WW Market Forecasts – Enterprise Servers, Storage, Software, Appliances, Services
Sun Market Shares – Servers (HE,MR,WkStns), Storage, Software (Java,Sunsoft), Services
Sun Competitive Positioning by Products – Servers, Storage, Software, Enterprise & Web Services
Sun Market Strategy - Enterprise, Midrange, SMB, Service Providers
Sun Financials by Business Segments, Product Lines, Geography, Sales & Earnings Model
© 1997-2002 IMEX Research - (408)268-0800 - info@imexresearch.com
Revenues by Product line
Sun
S Services Rev 2002
Sun Products Re v 2002
Sun Product & Services
Rev. 2002 - $12,496
Educati
on
10%
Storage
25%
Prof.
Se rvic
e
35%
M aint/
Suppo
rt
55%
Services
$3,403M
SW
5%
Products
$9,9093
Se rve rs
52%
Sun Microsystems
Revenue vs. Gross Margin 2002
$6,000
Servers
$5,000
Revenue
$4,000
Storage
$3,000
Maint./Supp.
$2,000
Prof. Servic.
$1,000
Wkstns
Education
$0
0%
20%
SW
Microelectr
Ntwg.
40%
60%
Gross Margin
80%
Wk Stns
10%
100%
M icroe l
2%
Ne tw k 'g
2%
Othe r
4%
Sun Product Line
Systems and Technology
Netra 20
Netra 120
Special Servers
(Netra Series)
Netra 1280
Sun Fire 15K
Netra 1400/1405
Sun Fire 12K
Netra CT800
Sun Fire 6800
Netra CT400
Sun Fire 4800
Netra CT810
Sun Fire V1280
Netra CT410
SunFire V880
SunFire V480
Sun Fire 280R
SunFire Blades
Sun LX50
SunFire V100
DataCenter
Standard
Servers
MidRange
Traffic Manager:
-Dynamic load balancing
across HBA’s
-Automatic path failover
Storage
SRM:
-Predictive trending
-Scriptable agents
Entry-Level
ESM:
-Industry’s first CIM
compliant SAN manager
-End to End diagnostics
Performance Suite:
-True SAN file sharing
-Massive scale and
performance
Utilization Suite:
-Policy based auto
archiving
-“Instant” recoverability
Sun Product Line
Desktops/Wkstns.
Sun Blade 150
Sun Blade 2000
Servers
Telco Systems
Entry-Level Servers
Servers
Sun Enterprise 250
Sun Fire 280R
Sun Fire B1600
Sun Fire V100
Sun Fire V120
Sun Fire V210
Sun Fire V240
Sun Fire V480
Sun Fire V880
Sun Fire V880z
Sun LX50
Sun Fire V60x
Sun Fire V65x
Netra 20
Netra t 1400
Netra t 1405
Netra 120
Netra 1280
Netra ct 400
Netra ct 800
Netra ct 1600
Netra CT 410
Netra CT 810
Netra ct 1600
Midrange Servers
Sun Fire 3800
Sun Fire 4800
Sun Fire 6800
Sun Fire V1280
Storage
Netra E1
Netra st A1000
Netra st D1000
High-End Servers
Sun Fire 12K
Sun Fire 15K
Misc. Systems
Disk Arrays
Tape Libraries
Sun Cobalt Server Appliances
Sun Cobalt CacheRaQ 4
Sun Cobalt RaQ 550
Sun Cobalt Control Station
Sun Cobalt Qube 3
Sun Ray
Sun Ray 1
Sun Ray 100
Sun Ray 150
Sun StorEdge 3310
Sun StorEdge 3510 FC
Sun StorEdge 3900 series
Sun StorEdge 6020/6120 Array
Sun StorEdge 6320 System
Sun StorEdge 6900 series
Sun StorEdge 9910/9960/9970/9980
Sun StorEdge A1000
Sun StorEdge A5200
Sun StorEdge D1000/D2
Sun StorEdge S1
Sun StorEdge T3/T3+
Sun StorEdge D240 Media Tray
Sun StorEdge MultiPack/-FC
SPARCstorage UniPack
Sun StorEdge L7
Sun StorEdge L8
Sun StorEdge L25/L100
Sun StorEdge L180
Sun StorEdge L700
Sun StorEdge L5500
Sun StorEdge L6000
SPARCstorage FlexiPack
SPARCstorage
Financials
FINANCIALS
1999
2000
2001
2002
2003
Revenue
$ 11,726 $ 15,721 $ 18,250
$ 12,496
$ 11,872
Cost of Goods Sold
$ 5,648 $ 7,549 $ 7,961
$ 5,506
$ 4,619
Gross Profit
$ 6,078 $ 8,172 $ 8,209
$ 4,916
$ 5,413
Gross Profit Margin
44.9%
39.3%
45.6%
SG&A Expense
$ 4,436 $ 5,779 $ 4,445
$ 3,812
$ 3,362
Operating Income
$ 1,642 $ 2,393 $ 1,311
$ -1,248
$
Operating Margin
Net Income
52%
14%
52%
15%
7%
$ 1,031 $ 1,854 $
Net Profit Margin
9%
927
12%
5%
Sun Microsystem - Financials
-10%
$
-587
-4%
39
0.3%
$
106
0.8%
Sun Micro Rev 2002
by Geography
20,000
Europe
29%
15,000
Revenues
10,000
$M
Gross Profit
5,000
Oper Income
0
1999
2000
2001
2002
2003
Net Income
-5,000
Stock Performance
HPQ
IBM
DELL
SUNW
US
46%
Japan
9%
ROW
16%
Revenues by Product line
Sun Microsystems
Revenue by Product Line
$16,000
Networking
$14,000
$12,000
Microelectronics
WkStn
Software
$10,000
Storage
$8,000
$6,000
$4,000
Servers
$2,000
$0
FY 1999
2000
2001
2002
2003e
2004e
2005e
Market Shares
World Wide IT Market Forecast
$1,600,000
Services
Enterprise SW
$2000
Storage
Workstations
Servers
PC
2001
2002
2003
2004
WW Storage Market Rev 2002-06
Tape
Low End, Midrange, and High
End Tape Storage
$80B
Direct Disk
Tape
Direct Disk
Low End, Midrange, and High
End DASD
Network Stg
EU Rev $B
NAS/SAN
Networked Storage
Storage Software
Storage Software
Enterprise Res. Mgmt., Data
Mgmt., Storage Infrastructure
Services
Services
Outsourcing, Consulting,
Systems Integration,
Performance Monitoring/Tunin
Education
2002
2003
2004
2005
2006
HW
Ent. Resource
M anagement
Storage Software
M edia and Library
M anagement,
SRM (including
SA N M anager)
$10B
$ Billions
Data
M anagement
B ackup/Reco very
, HSM /A rchive
Storage
Infrastructure
File systems,
vo lume
management,
virtualizatio n,
replicatio n
1999
2000
2001
2002
2003
2004
2005
2006
WW Server Market Share Gains 2Q03
Revenue vs. Mkt. Share Gains
$4.0
WW Server Rev 2Q03 ($B)
$3.5
HP
$3.0
IBM
$2.5
$2.0
Su
$1.5
Dell
$1.0
$0.5
$0.0
-25%
Fujitsu
-20%
-15%
-10%
-5%
0%
5%
Market Share Gain 2Q03 vs. 2Q02 (%)
10%
15%
Market Shares
WW Server Market Shares
2002 Shipments
W.W. Server Market Share
CPQ
17%
IBM
22%
SUN
17%
NEC
2%
Other
23%
DELL
6%
HPQ
31%
Other
28%
Sun
6%
HP
15%
IBM
14%
W.W. Disk Storage Market
W. W. Storage SW Market
CPQ
18%
Other
37%
HP
2%
Dell
19%
IBM
11%
CPQ
3%
EMC
18%
Sun
1%
IBM
16%
Veritas
16%
SUN
10%
HP
9%
EMC
25%
Other
34%
W.W. Services Market
IBM
9%
EOS
5% Fujitsu
3%
Anderson
3%
CSC
3%
Sun
1%
Other
76%
Sun Partnerships
Software
Integrated Apps.:
Afara
Ariba
ATG
Broadvision
Clustra
Gridware
Innosoft
Intershop
Interworld
iPlanet (Sun-Netscape
Alliance)
Open Market
Oracle
Pirus
Star Division
Terraspring
Trans (Critical Path)
Content Management:
Bulldog
Interwoven
Vignette
Virage
Security & Payment:
Baltimore
Entrust
ISS
Trintech
Interactive Media:
Macromedia
RealNetworks
E-marketplace:
Moai Technologies
Trading Dynamics (Ariba)
Portal Builders:
Autonomy
Epicentric
Lotus
TIBCO.net
Profiling/Personalization:
Accrue
Andromedia (Macromedia)
Engage
net.Genesis
NetPerceptions
Web/App Server:
BEA (WebLogic)
Iplanet
Catalogs & Configurators:
Selectica
Trilogy
Billing/IBP & P:
Portal
iPlanet
Just-in-time
Workflow/Collaboration:
FileNet
Documentum
Lotus
Performance:
Inktomi
Resonate
TimesTen
Customer Care:
Graham
Siebel
Vantive (Peoplesoft)
Storage Management:
VERITAS