Exhibit 99.1

INVESTOR CONTACT:
Jeff Boldt (650) 786-0333
jeff.boldt@sun.com

MEDIA CONTACT:
May Goh Petry (650) 786-0034
may.petry@sun.com

INDUSTRY ANALYST CONTACT:
Joanne Masters (650) 786-0847
joanne.masters@sun.com

SUN MICROSYSTEMS REPORTS FISCAL THIRD QUARTER RESULTS

      SANTA CLARA, Calif. — April 15, 2004 — Sun Microsystems, Inc. (NASDAQ: SUNW), a leader in systems and solutions that make the Net work, reported results today for its fiscal 2004 third quarter, which ended March 28, 2004. The results reported today for revenue and earnings per share are within the ranges provided in the company’s financial press release of April 2nd 2004.

      Revenues for the third quarter of fiscal 2004 were $2.651 billion, a sequential decrease of 8.2 percent and a year-over-year decline of 5.0 percent as compared with $2.790 billion for the third quarter of fiscal 2003. Total gross margin for the quarter as a percent of revenues was 40.3 percent, a decrease of 1.5 percentage points sequentially and a decrease of 4.3 percentage points as compared with the third quarter of fiscal 2003. Net loss for the quarter was $760 million or $0.23 per share as compared with net income of $4 million or $0.00 per share for the third quarter of fiscal 2003. This loss includes a non-cash charge of $300 million for an increase in the valuation allowance for deferred tax assets, a charge of $203 million for workforce and real estate restructuring, and a gain of $3 million on equity investments. Excluding these amounts, net loss for the quarter on a non-GAAP basis would have been $260 million or a net loss per share of $0.08.

      Sun has scheduled a conference call today to discuss its earnings for the third quarter of fiscal year 2004 at 2:30 p.m. (PT), which is being broadcast live at www.sun.com/investors.

About Sun Microsystems, Inc.

Since its inception in 1982, a singular vision — “The Network Is The Computer^TM” — has propelled SunMicrosystems, Inc. (Nasdaq: SUNW) to its position as a leading provider of industrial-strength hardware, software and services that make the Net work. Sun can be found in more than 100 countries and on the World Wide Web at http://www.sun.com.

      Sun, Sun Microsystems, the Sun logo, and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and in other countries.

SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions, except per share amounts)

	Three Months Ended						Nine Months Ended
	March 28, 2004			March 30, 2003			March 28, 2004			March 30,2003
Net revenues:
Products	$	1,711		$	1,897		$	5,289		$	5,790
Services		940			893			2,786			2,662
Total net revenues		2,651			2,790			8,075			8,452
Cost of sales:
Cost of sales—products		980			1,021			3,052			3,232
Cost of sales—services		603			526			1,731			1,582
Total cost of sales		1,583			1,547			4,783			4,814
Gross margin		1,068			1,243			3,292			3,638
Operating expenses:
Research and development		470			467			1,408			1,355
Selling, general and administrative		842			791			2,468			2,503
Restructuring charges		203			(4	)		194			377
Purchased in-process research and development		—			—			1			4
Impairment of goodwill and other intangible assets		—			—			—			2,125
Total operating expenses		1,515			1,254			4,071			6,364
Operating loss		(447	)		(11	)		(779	)		(2,726	)
Gain (loss) on equity investments, net		3			(16	)		(58	)		(58	)
Interest income, net		23			33			64			110
Income (loss) before income taxes		(421	)		6			(773	)		(2,674	)
Provision (benefit) for income taxes		339			2			398			(284	)
Net income (loss)	$	(760	)	$	4		$	(1,171	)	$	(2,390	)
Net income (loss) per common share—basic and diluted	$	(0.23	)	$	—		$	(0.36	)	$	(0.75	)
Shares used in the calculation of net income (loss) per common share — basic		3,286			3,193			3,261			3,181
Shares used in the calculation of net income (loss) per common share — diluted		3,286			3,218			3,261			3,181
Calculation of net income (loss) excluding special items:
Net income (loss) per above	$	(760	)	$	4		$	(1,171	)	$	(2,390	)
Restructuring charges		203			(4	)		194			377
Purchased in-process research and development		—			—			1			4
(Gain) loss on equity investments, net		(3	)		16			58			58
Impairment of goodwill and other intangible assets		—			—			—			2,125
Valuation allowance on deferred tax assets		300			—			300			—
Related tax effects		—			(5	)		—			(231	)
Net income (loss) excluding special items	$	(260	)	$	11		$	(618	)	$	(57	)
Net income (loss) excluding special items per common share — basic and diluted	$	(0.08	)	$	—		$	(0.19	)	$	(0.02	)
Shares used in the calculation of net income (loss) excluding special items per common share — basic		3,286			3,193			3,261			3,181
Shares used in the calculation of net income (loss) excluding special items per common share — diluted		3,286			3,218			3,261			3,181

SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)

	March 28, 2004		June 30, 2003*
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,506	$	2,015
Short-term marketable debt securities		866		1,047
Accounts receivable, net		2,201		2,381
Inventories		497		416
Deferred and prepaid tax assets		424		133
Prepaid expenses and other current assets		822		787
Total current assets		6,316		6,779
Property, plant and equipment, net		2,075		2,267
Long-term marketable debt securities		3,111		2,679
Goodwill		470		326
Other acquisition-related intangible assets, net		119		91
Other non-current assets, net		692		843
	$	12,783	$	12,985
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt and short-term borrowings	$	257	$	—
Accounts payable		1,011		903
Accrued payroll-related liabilities		584		479
Accrued liabilities and other		1,053		1,027
Deferred revenues		1,342		1,453
Warranty reserve		247		267
Total current liabilities		4,494		4,129
Long-term debt		1,209		1,531
Long-term deferred revenues		537		450
Other non-current obligations		990		384
Total stockholders’ equity		5,553		6,491
	$	12,783	$	12,985

* Derived from audited financial statements

SUN MICROSYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)

	Nine Months Ended
	March 28, 2004			March 30, 2003
Cash flows from operating activities:
Net loss	$	(1,171	)	$	(2,390	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		517			676
Amortization of other intangible assets and unearned equity compensation		65			87
Impairment of goodwill and other intangible assets		—			2,125
Tax benefits from employee stock plans		—			9
Deferred taxes		300			(284	)
Loss on equity investments, net		58			58
Purchased in-process research and development		1			4
Changes in operating assets and liabilities:
Accounts receivable, net		202			468
Inventories		(77	)		206
Prepaid and other assets		(18	)		171
Accounts payable		113			(168	)
Other liabilities		64			(260	)
Net cash provided by operating activities		54			702
Cash flows from investing activities:
Purchases of marketable debt securities		(6,649	)		(4,643	)
Proceeds from sales of marketable debt securities		6,374			4,219
Proceeds from maturities of marketable debt securities		—			564
Proceeds from (purchases of) equity investments, net		14			(15	)
Acquisition of property, plant and equipment, net		(189	)		(238	)
Acquisition of spare parts and other assets		(56	)		(132	)
Payments for acquisitions, net of cash acquired		(201	)		(30	)
Net cash used in investing activities		(707	)		(275	)
Cash flows from financing activities:
Acquisition of common stock		—			(499	)
Proceeds from issuance of common stock, net		151			87
Principal payments on borrowings and other obligations		(7	)		(201	)
Net cash provided by (used in) financing activities		144			(613	)
Net decrease in cash and cash equivalents		(509	)		(186	)
Cash and cash equivalents, beginning of period		2,015			2,024
Cash and cash equivalents, end of period	$	1,506		$	1,838

SUN MICROSYSTEMS, INC.
OPERATIONS ANALYSIS — CONSOLIDATED (UNAUDITED)

STATEMENTS OF OPERATIONS	FY 2004												FY 2003															FY 2002
(in millions except per share amounts)	Q1			Q2			Q3			FY04 YTD			Q1			Q2			Q3			Q4			FY03			Q3			Q4			FY02
NET REVENUES
Products		1,634			1,944			1,711			5,289			1,880			2,013			1,897			2,003			7,793			2,269			2,507			9,093
Services		902			944			940			2,786			867			902			893			979			3,641			838			913			3,403
TOTAL		2,536			2,888			2,651			8,075			2,747			2,915			2,790			2,982			11,434			3,107			3,420			12,496
Growth vs. prior year (%)		-7.7	%		-0.9	%		-5.0	%		-4.5	%		-4.0	%		-6.2	%		-10.2	%		-12.8	%		-8.5	%		-24.1	%		-14.4	%		-31.5	%
Growth vs. prior quarter (%)		-15.0	%		13.9	%		-8.2	%					-19.7	%		6.1	%		-4.3	%		6.9	%					0.0	%		10.1	%
COST OF SALES
Products		965			1,107			980			3,052			1,093			1,118			1,021			1,110			4,342			1,306			1,476			5,506
Services		555			573			603			1,731			522			534			526			568			2,150			494			530			2,074
TOTAL		1,520			1,680			1,583			4,783			1,615			1,652			1,547			1,678			6,492			1,800			2,006			7,580
% of revenue		59.9	%		58.2	%		59.7	%		59.2	%		58.8	%		56.7	%		55.4	%		56.3	%		56.8	%		57.9	%		58.7	%		60.7	%
GROSS MARGIN ($)
Products		669			837			731			2,237			787			895			876			893			3,451			963			1,031			3,587
% of product revenue		40.9	%		43.1	%		42.7	%		42.3	%		41.9	%		44.5	%		46.2	%		44.6	%		44.3	%		42.4	%		41.1	%		39.4	%
Services		347			371			337			1,055			345			368			367			411			1,491			344			383			1,329
% of service revenue		38.5	%		39.3	%		35.9	%		37.9	%		39.8	%		40.8	%		41.1	%		42.0	%		41.0	%		41.1	%		41.9	%		39.1	%
TOTAL		1,016			1,208			1,068			3,292			1,132			1,263			1,243			1,304			4,942			1,307			1,414			4,916
% of revenue		40.1	%		41.8	%		40.3	%		40.8	%		41.2	%		43.3	%		44.6	%		43.7	%		43.2	%		42.1	%		41.3	%		39.3	%
R&D		467			471			470			1,408			437			451			467			482			1,837			468			463			1,832
% of revenue		18.4	%		16.3	%		17.7	%		17.4	%		15.9	%		15.5	%		16.7	%		16.2	%		16.1	%		15.1	%		13.5	%		14.7	%
PURCHASED IN PROCESS R&D		1			0			0			1			0			4			0			0			4			0			0			3
% of revenue		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.1	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
SG&A		798			828			842			2,468			882			830			791			826			3,329			985			894			3,806
% of revenue		31.5	%		28.7	%		31.8	%		30.6	%		32.1	%		28.5	%		28.4	%		27.7	%		29.1	%		31.7	%		26.1	%		30.5	%
RESTRUCTURING CHARGES		1			(10	)		203			194			24			357			(4	)		(6	)		371			(4	)		(4	)		517
% of revenue		0.0	%		-0.3	%		7.7	%		2.4	%		0.9	%		12.2	%		-0.1	%		-0.2	%		3.2	%		-0.1	%		-0.1	%		4.1	%
IMPAIRMENT EXPENSE		0			0			0			0			0			2,125			0			0			2,125			6			0			6
% of revenue		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		72.9	%		0.0	%		0.0	%		18.6	%		0.2	%		0.0	%		0.0	%
TOTAL OPERATING EXPENSES		1,267			1,289			1,515			4,071			1,343			3,767			1,254			1,302			7,666			1,455			1,353			6,164
% of revenue		50.0	%		44.6	%		57.1	%		50.4	%		48.9	%		129.2	%		44.9	%		43.7	%		67.0	%		46.8	%		39.6	%		49.3	%
OPERATING INCOME (LOSS)		(251	)		(81	)		(447	)		(779	)		(211	)		(2,504	)		(11	)		2			(2,724	)		(148	)		61			(1,248	)
Operating margin		-9.9	%		-2.8	%		-16.9	%		-9.6	%		-7.7	%		-85.9	%		-0.4	%		0.1	%		-23.8	%		-4.8	%		1.8	%		-10.0	%
Interest income, net		21			20			23			64			39			38			33			45			155			77			47			299
Gain (loss) on equity investments, net		(25	)		(36	)		3			(58	)		(31	)		(11	)		(16	)		(26	)		(84	)		(23	)		(18	)		(99	)
PRETAX INCOME (LOSS)		(255	)		(97	)		(421	)		(773	)		(203	)		(2,477	)		6			21			(2,653	)		(94	)		90			(1,048	)
Pretax income (loss) margin		-10.1	%		-3.4	%		-15.9	%		-9.6	%		-7.4	%		-85.0	%		0.2	%		0.7	%		-23.2	%		-3.0	%		2.6	%		-8.4	%
INCOME TAX PROVISION (BENEFIT)		31			28			339			398			(92	)		(194	)		2			1,060			776			(57	)		29			(461	)
TAX RATE (%)		N/A			N/A			N/A			N/A			45.5	%		7.8	%		44.0	%		N/A			N/A			60.8	%		11.3	%		44.0	%
NET INCOME (LOSS) (Reported)		(286	)		(125	)		(760	)		(1,171	)		(111	)		(2,283	)		4			(1,039	)		(3,429	)		(37	)		61			(587	)
Growth vs. prior year (%)		-157.7	%		94.5	%		-19100.0	%		51.0	%		38.3	%		-429.7	%		110.8	%		-1803.3	%		-484.2	%		-127.2	%		169.3	%		-163.3	%
Growth vs. prior quarter (%)		72.5	%		56.3	%		-508.0	%					-282.0	%		-1956.8	%		100.2	%		-26075.0	%					91.4	%		264.9	%
Net income (loss) margin		-11.3	%		-4.3	%		-28.7	%		-14.5	%		-4.0	%		-78.3	%		0.1	%		-34.8	%		-30.0	%		-1.2	%		1.8	%		-4.7	%
EPS (Diluted) (Reported)		(0.09	)		(0.04	)		(0.23	)		(0.36	)		(0.04	)		(0.72	)		0.00			(0.32	)		(1.07	)		(0.01	)		0.02			(0.18	)
Growth vs. prior year (%)		-125.0	%		94.4	%		N/A			52.0	%		33.3	%		-453.8	%		100.0	%		-1700.0	%		-494.4	%		-125.0	%		166.7	%		-166.7	%
Growth vs. prior quarter (%)		71.9	%		55.6	%		-475.0	%					-300.0	%		-1700.0	%		100.0	%		N/A						92.3	%		300.0	%
SHARES (CSE)(Diluted)		3,235			3,262			3,286			3,261			3,168			3,181			3,218			3,219			3,190			3,245			3,309			3,242
OUTSTANDING SHARES		3,240			3,280			3,293			3,293			3,116			3,194			3,200			3,236			3,236			3,245			3,234			3,234
GAAP net income (loss)		(286	)		(125	)		(760	)		(1,171	)		(111	)		(2,283	)		4			(1,039	)		(3,429	)		(37	)		61			(587	)
In-process research and development		1			0			0			1			0			4			0			0			4			0			0			3
Restructuring charges		1			(10	)		203			194			24			357			(4	)		(6	)		371			(4	)		(4	)		517
Gain (loss) on equity investments, net		25			36			(3	)		58			31			11			16			26			84			23			18			99
Impairment expense		0			0			0			0			0			2,125			0			0			2,125			6			0			6
Valuation allowance on deferred tax assets		0			0			300			300			0			0			0			1,051			1,051			0			0			0
Related tax effects		0			0			0			0			(22	)		(204	)		(5	)		(8	)		(239	)		(8	)		(6	)		(246	)
Net income (loss) excluding special items		(259	)		(99	)		(260	)		(618	)		(78	)		10			11			24			(33	)		(20	)		69			(208	)
Growth vs. prior year (%)		-232.1	%		-1090.0	%		-2463.6	%		-984.2	%		50.6	%		110.1	%		155.0	%		-65.2	%		84.1	%		-113.8	%		527.3	%		-118.8	%
EPS (Diluted) excluding special items*		(0.08	)		(0.03	)		(0.08	)		(0.19	)		(0.02	)		0.00			0.00			0.01			(0.01	)		(0.01	)		0.02			(0.06	)
Growth vs. prior year (%)		-300.0	%		N/A			N/A			-850.00	%		60.0	%		100.0	%		100.0	%		-50.0	%		83.3	%		-125.0	%		N/A			-118.8	%

*	For the quarters ended June 30, 2003 and December 29, 2002, Sun used 3,251 shares and 3,205 shares, respectively, to calculate the “Net income (loss) excluding special items.”
	For all other periods, the number of shares used to calculate “EPS (Diluted) (Reported)” and “EPS (Diluted) excluding special items” were the same.

	FY 2004													FY 2003															FY2002
(in millions)		Q1			Q2			Q3			FY04 YTD			Q1			Q2			Q3			Q4			FY03			Q3			Q4			FY02
REVENUE BY GEOGRAPHY
UNITED STATES ($M)			1,162			1,214			1,037			3,413			1,242			1,267			1,212			1,328			5,049			1,439			1,714			5,936
Growth vs. prior year (%)			-6.4	%		-4.2	%		-14.4	%		-8.3	%		-7.8	%		-11.8	%		-15.8	%		-22.5	%		-14.9	%		-13.9	%		-9.9	%		-32.4	%
Growth vs. prior quarter (%)			-12.5	%		4.5	%		-14.6	%					-27.5	%		2.0	%		-4.3	%		9.6	%					0.2	%		19.1	%
EUROPE ($M)			780			928			921			2,629			806			932			886			954			3,578			924			973			3,606
Growth vs. prior year (%)			-3.2	%		-0.4	%		4.0	%		0.2	%		-0.4	%		3.6	%		-4.1	%		-2.0	%		-0.8	%		-30.9	%		-13.2	%		-31.6	%
Growth vs. prior quarter (%)			-18.2	%		19.0	%		-0.8	%					-17.2	%		15.6	%		-4.9	%		7.7	%					2.7	%		5.3	%
JAPAN ($M)			185			192			207			584			250			243			243			200			936			278			203			1,060
Growth vs. prior year (%)			-26.0	%		-21.0	%		-14.8	%		-20.7	%		-12.9	%		-16.8	%		-12.6	%		-1.5	%		-11.7	%		-43.6	%		-43.8	%		-38.0	%
Growth vs. prior quarter (%)			-7.5	%		3.8	%		7.8	%					23.2	%		-2.8	%		0.0	%		-17.7	%					-4.8	%		-27.0	%
REST OF WORLD ($M)			409			554			486			1,449			449			473			449			500			1,871			466			530			1,894
Growth vs. prior year (%)			-8.9	%		17.1	%		8.2	%		5.7	%		7.4	%		-1.5	%		-3.6	%		-5.7	%		-1.2	%		-21.4	%		-13.3	%		-24.0	%
Growth vs. prior quarter (%)			-18.2	%		35.5	%		-12.3	%					-15.3	%		5.3	%		-5.1	%		11.4	%					-2.9	%		13.7	%
% of Total Revenue
UNITED STATES (%)			45.8	%		42.1	%		39.2	%		42.3	%		45.2	%		43.5	%		43.4	%		44.5	%		44.2	%		46.3	%		50.1	%		47.5	%
EUROPE (%)			30.8	%		32.1	%		34.7	%		32.6	%		29.3	%		32.0	%		31.8	%		32.0	%		31.3	%		29.7	%		28.5	%		28.9	%
JAPAN (%)			7.3	%		6.6	%		7.8	%		7.2	%		9.1	%		8.3	%		8.7	%		6.7	%		8.2	%		8.9	%		5.9	%		8.5	%
REST OF WORLD (%)			16.1	%		19.2	%		18.3	%		17.9	%		16.3	%		16.2	%		16.1	%		16.8	%		16.4	%		15.0	%		15.5	%		15.2	%
PRODUCTS AND SERVICES REVENUE
COMPUTER SYSTEMS PRODUCTS ($M)			1,282			1,568			1,365			4,215			1,512			1,621			1,530			1,580			6,243			1,864			2,002			7,396
Growth vs. prior year (%)			-15.2	%		-3.3	%		-10.8	%		-9.6	%		-10.6	%		-11.8	%		-17.9	%		-21.1	%		-15.6	%		-31.3	%		-21.4	%		-40.3	%
Growth vs. prior quarter (%)			-18.9	%		22.3	%		-12.9	%					-24.5	%		7.2	%		-5.6	%		3.3	%					1.4	%		7.4	%
NETWORK STORAGE PRODUCTS ($M)			352			376			346			1,074			368			392			367			423			1,550			405			505			1,697
Growth vs. prior year (%)			-4.3	%		-4.1	%		-5.7	%		-4.7	%		0.8	%		-7.1	%		-9.4	%		-16.2	%		-8.7	%		-26.1	%		-7.5	%		-35.4	%
Growth vs. prior quarter (%)			-16.8	%		6.8	%		-8.0	%					-27.1	%		6.5	%		-6.4	%		15.3	%					-4.0	%		24.7	%
SUPPORT SERVICES ($M)			731			745			731			2,207			683			702			704			755			2,844			636			692			2,538
Growth vs. prior year (%)			7.0	%		6.1	%		3.8	%		5.6	%		16.8	%		12.3	%		10.7	%		9.1	%		12.1	%		15.8	%		12.5	%		16.0	%
Growth vs. prior quarter (%)			-3.2	%		1.9	%		-1.9	%					-1.3	%		2.8	%		0.3	%		7.2	%					1.8	%		8.8	%
PROFESSIONAL AND EDUCATION SERVICES ($M)			171			199			209			579			184			200			189			224			797			202			221			865
Growth vs. prior year (%)			-7.1	%		-0.5	%		10.6	%		1.0	%		-16.0	%		-10.3	%		-6.4	%		1.4	%		-7.9	%		-28.9	%		-23.0	%		-17.4	%
Growth vs. prior quarter (%)			-23.7	%		16.4	%		5.0	%					-16.7	%		8.7	%		-5.5	%		18.5	%					-9.4	%		9.4	%
NET BOOKINGS ($M)			2,538			2,980			2,617			8,135			2,601			2,989			2,688			3,020			11,298			3,088			3,486			12,484
Growth vs. prior year (%)			-2.4	%		-0.3	%		-2.6	%		-1.7	%		-4.3	%		-6.4	%		-13.0	%		-13.4	%		-9.5	%		-14.5	%		-4.5	%		-27.7	%
Growth vs. prior quarter (%)			-16.0	%		17.4	%		-12.2	%					-25.4	%		14.9	%		-10.1	%		12.4	%					-3.3	%		12.9	%
BACKLOG ($M)			707			799			765			765			695			769			667			705			705			775			841			841

BALANCE SHEETS	FY 2004												FY 2003															FY 2002
(in millions)	Q1			Q2			Q3						Q1			Q2			Q3			Q4						Q3			Q4
CASH & ST INVESTMENTS		2,520			2,160			2,372						2,632			2,606			2,636			3,062						2,384			2,885
ACCOUNTS RECEIVABLE, NET		1,905			2,214			2,201						2,133			2,291			2,296			2,381						2,407			2,745
RAW MATERIALS		133			120			129						136			119			101			114						206			168
WORK IN PROCESS		73			107			121						123			130			82			75						118			125
FINISHED GOODS		220			253			247						250			235			214			227						230			298
TOTAL INVENTORIES		426			480			497						509			484			397			416						554			591
OTHER CURRENT ASSETS		890			966			1,246						1,629			1,447			1,302			920						2,348			1,556
TOTAL CURRENT ASSETS		5,741			5,820			6,316						6,903			6,828			6,631			6,779						7,693			7,777
PP&E,NET		2,152			2,115			2,075						2,408			2,321			2,265			2,267						2,512			2,453
GOODWILL		389			466			470						2,182			326			326			326						2,182			2,182
LT MARKETABLE DEBT SECURITIES		3,006			3,001			3,111						2,612			2,671			2,902			2,679						3,564			2,979
OTHER NON-CURRENT ASSETS, NET		825			822			811						1,271			1,323			1,421			934						923			1,131
TOTAL ASSETS		12,113			12,224			12,783						15,376			13,469			13,545			12,985						16,874			16,522
SHORT TERM BORROWINGS		263			263			257						0			0			0			0						207			205
ACCOUNTS PAYABLE		780			906			1,011						798			809			870			903						935			1,044
ACCRUED LIABILITIES & OTHER		1,652			1,583			1,884						1,873			1,900			1,792			1,773						2,135			2,023
DEFERRED REVENUES		1,214			1,213			1,342						1,109			1,079			1,162			1,453						1,055			1,321
TOTAL CURRENT LIABILITIES		3,909			3,965			4,494						3,780			3,788			3,824			4,129						4,332			4,593
LT DEBT		1,215			1,214			1,209						1,500			1,519			1,495			1,531						1,384			1,449
LT DEFERRED REVENUES		462			463			537						547			520			512			450						570			477
OTHER NON-CURRENT OBLIGATIONS		364			343			990						240			369			354			384						857			202
STOCKHOLDERS’ EQUITY		6,163			6,239			5,553						9,309			7,273			7,360			6,491						9,731			9,801
TOTAL LIABILITIES & SE		12,113			12,224			12,783						15,376			13,469			13,545			12,985						16,874			16,522
CASH FLOW	Q1			Q2			Q3			FY04 YTD			Q1			Q2			Q3			Q4			FY03			Q3			Q4			FY02
OPERATING ACTIVITIES		(49	)		(282	)		385			54			182			141			379			335			1,037			288			177			880
INVESTING ACTIVITIES		(492	)		123			(338	)		(707	)		126			(293	)		(108	)		(253	)		(528	)		269			287			39
FINANCING ACTIVITIES		7			106			31			144			(696	)		73			10			95			(518	)		(90	)		(112	)		(367	)
KEY METRICS	Q1			Q2			Q3						Q1			Q2			Q3			Q4						Q3			Q4
INVENTORY TURNS (hist.)		13.7			13.3			14.5						10.9			12.8			14.3			12.9						10.6			9.2
INVENTORY TURNS-PRODUCT ONLY (hist.)		9.0			8.7			9.3						7.8			9.0			9.9			8.6						7.8			6.7
DAYS SALES OUTSTANDING		68			69			75						70			71			74			72						70			72
DAYS PAYABLES OUTSTANDING		(46	)		(49	)		(57	)					(44	)		(44	)		(51	)		(48	)					(47	)		(47	)
DAYS OF SUPPLY ON HAND		25			26			28						28			26			23			22						28			27
LT DEBT/EQUITY(%)		19.7	%		19.5	%		21.8	%					16.1	%		20.9	%		20.3	%		23.6	%					14.2	%		14.8	%
ROE (12 mo. avg.)(%)		-52.8	%		-22.0	%		-36.2	%					-5.3	%		-26.3	%		-27.6	%		-45.1	%					-7.3	%		-5.9	%
BOOK VALUE PER SHARE($)		1.90			1.90			1.69						2.99			2.28			2.30			2.01						3.00			3.03
PRICE PER SHARE @ CLOSE		3.84			4.38			4.11						2.67			3.25			3.43			4.65						9.52			5.01
P/E RATIO (previous 4 qtrs)		N/A			N/A			N/A						N/A			N/A			N/A			N/A						N/A			N/A
ROA (12 mo. avg.)(%)		-27.7	%		-11.4	%		-17.6	%					-3.1	%		-15.2	%		-15.8	%		-24.8	%					-4.2	%		-3.5	%
DEPREC. & AMORT. ($M)		218			189			184						272			275			216			265						273			286
CAPITAL EXPENDITURES ($M)		55			72			62						83			98			57			135						126			98
NUMBER OF EMPLOYEES		36,014			35,802			35,386						39,001			36,460			35,745			36,068						39,473			39,433
REV. PER EMP. (12 mo.)($K)		311.6			312.7			312.5						317.5			334.3			332.1			317.0						331.1			316.9
GM PER EMP. (12mo.)($K)		134.0			133.3			129.9						128.0			140.3			141.3			137.0						130.4			124.7
OP EXP AS % OF REV (12mo.)		67.6	%		45.7	%		48.6	%					48.9	%		65.0	%		65.0	%		67.0	%					50.8	%		49.3	%
NET INCOME (LOSS) PER EMP. (12mo.)($K)		(100.1	)		(40.4	)		(62.5	)					(13.3	)		(65.0	)		(65.2	)		(95.1	)					(18.6	)		(14.9	)