On Monday, Nov. 5, data center conqueror Sun Microsystems
- This was the fourth consecutive quarter of positive net income for Sun -- the first such streak since mid-2001. The company has been consistently cash flow-positive for years, though.
- Let's talk some more history. Gross margins haven't been this wide since June 2000, but operating margins are suffering from restructuritis. Sun spent $113 million on restructuring charges this quarter, which was more than the $97 million spent all of last year.
- The numbers are nice, but they don't tell the whole story. Check out what else Sun is doing over here.
(Figures in millions, except per-share data)
Income Statement Highlights
Q1 2008 |
Q1 2007 |
Change |
|
---|---|---|---|
Sales |
$3,219 |
$3,189 |
0.9% |
Net Profit |
$89.0 |
($56.0) |
N/A |
EPS |
$0.03 |
($0.02) |
N/A |
Diluted Shares |
3,537 |
3,497 |
1.1% |
Get back to basics with the income statement.
Margin Checkup
Q1 2008 |
Q1 2007 |
Change* |
|
---|---|---|---|
Gross Margin |
48.5% |
43.5% |
5.0 |
Operating Margin |
2.0% |
(2.0%) |
4.0 |
Net Margin |
2.8% |
(1.8%) |
4.5 |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2008 |
Q1 2007 |
Change |
---|---|---|---|
Cash + ST Invest. |
$3,819.0 |
$3,971.0 |
(3.8%) |
Accounts Rec. |
$2,203.0 |
$2,036.0 |
8.2% |
Inventory |
$571.0 |
$584.0 |
(2.2%) |
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
---|---|---|---|
Accounts Payable |
$1,140.0 |
$1,292.0 |
(11.8%) |
Long-Term Debt |
$1,270.0 |
$582.0 |
118.2% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q1 2008 |
Q1 2007 |
Change |
|
---|---|---|---|
Cash From Ops. |
$574.0 |
$123.0 |
366.7% |
Capital Expenditures |
$127.0 |
($160.0) |
N/A |
Free Cash Flow |
$447.0 |
$283.0 |
58.0% |
$268.0 |
$329.0 |
(18.5%) |
Free cash flow is a Fool's best friend.
Competitive Context
Market Cap |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Microsoft |
$338,290 |
23.7 |
*** |
International Business Machines |
$154,140 |
16.6 |
*** |
Hewlett-Packard |
$136,660 |
21.4 |
**** |
Dell |
$67,170 |
23.9 |
** |
EMC |
$48,950 |
32.8 |
***** |
Sun Microsystems |
$18,710 |
40.4 |
*** |
Related Foolishness: