Revenues for the second quarter were $5.115 billion, up 44 percent compared with the second quarter of fiscal 2000. Orders for the second quarter were $4.953 billion, representing a year over year increase of 32 percent. Net income for the second quarter was $552 million, up 56 percent compared with last year’s net income of $354 million (excluding gains on the sale of equity investments and acquisition-related charges for fiscal year 2001). Second quarter earnings per share was $0.16, an increase of 60 percent compared with $0.10 per share for the same period a year ago (excluding gains on the sale of equity investments and acquisition-related charges for fiscal year 2001).

During the second quarter of fiscal 2001, Sun completed the acquisition of Cobalt Networks, Inc. for $2.061 billion in Sun common stock and stock options. Sun recognized during the second quarter of fiscal 2001 approximately $130 million in accounting charges related to this acquisition or $0.04 per share, on an after tax basis.

Including gains on the sale of equity investments and acquisition related charges, reported net income for the second quarter of fiscal 2001 was $423 million or $0.12 per share, compared with $354 million or $0.10 per share for the same period a year ago.

For the first six months of fiscal 2001, Sun reported revenues of $10.160 billion, up 52% over the corresponding period a year ago. Net income was $1.062 billion or $0.31 per share, compared with net income of $629 million or $0.19 per share for the first six months of fiscal 2000, increases of 69% and 63%, respectively (excluding gains on the sale of equity investments and acquisition-related charges for fiscal years 2000 and 2001).

Including gains on the sale of equity investments and acquisition related charges, reported net income for the first six months of fiscal 2001 was $933 million or $0.27 per share, compared with $625 million or $0.19 per share in fiscal 2000.

Even with the market dynamics the way they are, we still gained more market share this quarter than in previous quarters. The numbers continue to tell the story, regarding customer acceptance of our products, service and support on a global basis. Current market conditions will clearly separate the leaders from the followers, said Scott McNealy, Chief Executive Officer of Sun Microsystems.