CP 3-2. Sun Microsystems is a leading supplier of computer related products, including servers, workstations, storage devices, and network switches.
In the letter to stockholders as part of the 2001 annual report, President and CEO Scott G. McNealy offered the following remarks?
Fiscal 2001 was clearly a mixed bag for Sun, the industry, and the economy as a whole. Still, we finished with revenue growth of 16 percent?and that's significant. We believe it's a good indication that Sun continued to pull away from the pack and gain market share. For that, we owe a debt of gratitude to our employees worldwide, who aggressively brought costs down?even as they continued to bring exciting new products to market.
The statement would not appear to be telling you enough. For example, McNealy says the year was a mixed bag with revenue growth of 16 percent. But what about earnings? You can delve further by examining the income statement in Figure 1. Also, for additional analysis of other factors, consolidated balance sheet(s) are presented in Figure 1.
Sun Microsystems, Inc.
Summary Consolidated Statement of Income (in millions)
2001
Dollars 2000
Dollars 1999 Dollars 1998 Dollars
Net revenues $18,250 $15,721 $11,806 $9,862
Costs and expenses:
Cost of sales 10,041 7,549 5,670 4,713
Research and development 2,016 1,630&n ...