1

Investor Relations

http://www.sun.com/investors

SUN MICROSYSTEMS

Q409 Results

Financial Slides

Exhibit 99.2

2

Top Level P&L

Revenue

3,780

2,614

2,625

11

0%

(1,155)

(31%)

Gross Margin

1,673

1,116

1,064

(52)

(5%)

(609)

(36%)

Gross Margin %

44.3%

42.7%

40.5%

(2.2)

Pts

(3.8)

Pts

Operating Expenses *

1,610

1,285

1,282

(3)

(0%)

(328)

(20%)

Operating Income

63

(169)

(218)

(49)

(29%)

(281)

(446%)

Net Income

88

(201)

(147)

54

27%

(235)

(267%)

Operating Margin %

1.7%

(6.5%)

(8.3%)

(1.8)

Pts

(10.0)

Pts

EPS GAAP

$0.11

($0.27)

($0.20)

$0.07

26%

($0.31)

(282%)

Non-GAAP Net Income **

275

(52)

(21)

31

60%

(296)

(108%)

EPS Non-GAAP **

$0.35

($0.07)

($0.03)

$0.04

57%

($0.38)

(109%)

* Total Operating Expenses includes SG&A, R&D, Purchase IPRD, Restructuring, & Intangible Impairment charges.

Q408

Actuals

Q309

Actuals

Q409

Actuals

Q-Q 

Change

Y-Y

Change

Y-Y

%Change

Q-Q

%Change

3

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

$0

$1,000

$2,000

$3,000

$4,000

PRODUCTS/SERVICES

Fiscal Quarter

Year/Year Change

Revenue

Services Revenue (% of Total)

Products Revenue (% of Total)

Products Revenue down (38)% Y/Y

Services Revenue down (18)% Y/Y

35%

65%

65%

0%

38%

62%

62%

1%

38%

62%

62%

1%

39%

61%

61%

(1)%

37%

63%

63%

(1)%

41%

59%

59%

(7)%

40%

60%

60%

(11)%

42%

58%

58%

(20)%

44%

56%

56%

(31)%

4

PRODUCTS/SERVICES

Revenue

Q104

Q204

Q304

Q404

Q105

Q205

Q305

Q405

Q106

Q206

Q306

Q406

Q107

Q207

Q307

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

-13%

-3%

-10%

3%

3%

-5%

-2%

-7%

2%

15%

21%

31%

15%

7%

1%

-1%

1%

-1%

-3%

-4%

-11%

-14%

-24%

-38%

4%

5%

5%

7%

6%

6%

0%

0%

7%

23%

21%

25%

20%

6%

7%

3%

1%

5%

3%

4%

-1%

-6%

-13%

-18%

Products Revenue

Services Revenue

Fiscal Quarter

Year/Year Change

5

Billings Disclosure by Category*

($Millions)

Q407

FY07

Q108

Q208

Q308

Q408

FY08

Q109

Q209

Q309

Q409

FY09

Systems Billings

Solaris SPARC Enterprise Servers

1,076

3,388

793

978

702

939

3,413

576

662

504

435

2,177

Change % Y/Y

1

2

23

8

-8

-13

1

-27

-32

-28

-54

-36

Solaris SPARC CMT Servers

220

608

185

282

299

353

1,119

338

369

309

355

1,370

Change % Y/Y

84

237

70

105

110

61

84

83

31

3

0

22

X64 Servers

192

684

169

157

186

195

707

176

175

145

178

675

Change % Y/Y

28

44

10

-11

14

1

3

4

11

-22

-9

-5

Other Systems Products

462

1,737

356

367

282

286

1,292

156

130

83

65

434

Change % Y/Y

-23

-19

-15

-21

-27

-38

-26

-56

-65

-70

-77

-66

Subtotal***

1,950

6,418

1,503

1,785

1,469

1,774

6,530

1,246

1,336

1,041

1,033

4,657

Change % Y/Y

1

5

13

6

1

-9

2

-17

-25

-29

-42

-29

Software Billings

Java

94

219

29

45

57

88

220

34

67

73

108

281

Change % Y/Y

17

13

21

10

-4

-6

1

18

47

27

22

28

MySQL

/ Infrastructure

74

198

25

52

40

91

208

52

81

80

100

313

Change % Y/Y

35

43

-17

16

-20

24

5

111

55

101

10

51

Solaris, Management and Virtualization

55

221

44

59

49

64

216

38

42

34

45

159

Change % Y/Y

2

12

-12

-10

-4

16

-2

-14

-29

-30

-29

-26

Subtotal***

223

639

97

156

147

244

644

124

189

187

253

754

Change % Y/Y

18

20

-6

3

-9

9

1

27

21

28

4

17

-320

-602

-126

-347

-142

-295

-910

-114

-156

-135

-187

-591

Total Computer Systems Revenue***

1,853

6,455

1,475

1,594

1,473

1,722

6,264

1,257

1,369

1,094

1,099

4,819

Storage Billings

Disks & Storage Arrays

387

1,412

302

407

350

468

1,528

311

386

233

242

1,172

Change % Y/Y

-7

1

3

6

1

21

8

3

-5

-34

-48

-23

Open Storage

24

50

9

26

23

33

91

25

31

38

51

145

Change % Y/Y

55

155

37

83

162

21

63

57

59

Tape

266

990

196

282

195

279

953

188

245

202

149

784

Change % Y/Y

-8

-8

-4

2

-19

5

-4

-4

-13

3

-47

-18

Other Storage

22

37

14

17

16

12

58

11

8

6

5

30

Change % Y/Y

153

-12

69

41

458

-44

55

-16

-54

-62

-55

-48

-60

-172

-17

-77

-54

-128

-276

-28

-100

-53

-66

-246

Total Storage Revenue***

639

2,316

505

655

530

664

2,354

507

570

425

383

1,885

Total Products Revenue

2,492

8,771

1,980

2,249

2,003

2,386

8,618

1,764

1,939

1,519

1,482

6,704

Services Revenue

1,024

3,962

979

1,041

961

1,042

4,023

963

946

853

886

3,648

Change % Y/Y

4

8

-1

4

1

2

2

-2

-9

-11

-15

-9

Professional and Education Services

319

1,140

260

325

302

352

1,239

263

335

242

257

1,097

Change % Y/Y

0

12

7

7

11

10

9

1

3

-20

-27

-11

Total Services Revenue

1,343

5,102

1,239

1,366

1,263

1,394

5,262

1,226

1,281

1,095

1,143

4,745

Total Sun Revenue

3,835

13,873

3,219

3,615

3,266

3,780

13,880

2,990

3,220

2,614

2,625

11,449

Notes:

Blade Servers Billings (includes CMT, X64, and Netra)

43

96

55

44

69

73

241

61

71

55

66

254

Change % Y/Y

0

0

638

122

162

71

151

11

62

-19

-9

5

•

Solaris SPARC Enterprise Servers includes the Datacenter & Midrange server systems

•

Solaris SPARC CMT Servers includes all CMT Servers, including CMT Blades and CMT Netra

products

•

X64 Servers includes X64 Rack, X64 Blades and X64 Netra

products and excludes products categorized under Open Storage

•

Other Systems Products includes Workstations, Volume SPARC, Netra

SPARC, Integrated Products and Networking products

•

Open Storage includes the Sun Storage 7110,7210, and 7410, Sun

Fire X4500, Sun Fire X4540, J4200, J4400 and J4500 products

•

Other Storage includes the NAS products minus Sun Storage 7110,7210, and 7410

*** Excludes service revenue attributable to Systems, Software, and Storage including maintenance and support shown in the Hardware, Software Support line under Services Revenue

Computer

Systems

Reserves

and

Adjustments**

Storage Reserves and Adjustments**

Hardware, Software Support  (Including Solaris &

Other Software)

*Billings represent the amount invoiced to customers for products and are subject to cancellation. Billings is not a GAAP financial measurement, and therefore is not an audited number. Billings

differs

from

revenue

in

that

billings

are

not

adjusted

for

any

reserves

and

are

not

subject

to

any

of

the

conditions

under

GAAP

that

must

be

met

before

revenue

is

recognized.

Accordingly,

amounts

billed

may

not

lead

to

revenue

and

billings

should

not

be

viewed

as

equivalent

to,

or

a

substitute

for,

GAAP

revenue.

**Reserves and adjustments represent deferrals, reserves and other reductions of invoiced amounts required under GAAP before revenue is recognized.

6

Billings Trends*

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

0

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

Traditional Categories

Other Storage

Tape

Disks & Storage

Arrays

Other Systems

Products

Solaris SPARC

Enterprise Servers

Fiscal Quarter

Fiscal Quarter

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

0

125

250

375

500

625

750

875

1,000

1,125

Growth Categories

Open Storage

Solaris, Management

and Virtualization

MySQL

/ Infrastruc

-

ture

Java

X64 Servers

Solaris SPARC CMT

Servers

*Billings represent the amount invoiced to customers for products and are subject to cancellation. Billings is not a GAAP financial measurement, and therefore is not an audited number. Billings differs from revenue in that billings

are  not adjusted for any reserves and are not subject to any of the conditions under GAAP that must be met before revenue is recognized.  Accordingly, amounts billed may not lead to revenue and billings should not be viewed as

equivalent  to, or a substitute for, GAAP revenue. 

7

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

$0

$500

$1,000

$1,500

TOTAL SERVICES REVENUE

Fiscal Quarter

Year/Year Change

Services Revenue

Professional Services/Edu Services

Revenue (% of Total Services)

Support Services Revenue (% of Total

Services)

Support Services down (15)% Y/Y

Professional Services/Edu Services down (27)% Y/Y

24%

76%

76%

3%

79%

79%

21%

1%

76%

76%

24%

5%

76%

76%

24%

3%

4%

75%

75%

25%

(1)%

79%

79%

21%

26%

74%

74%

(6)%

(13)%

78%

78%

22%

(18)%

78%

78%

22%

8

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

$0

$500

$1,000

$1,500

$2,000

Fiscal Quarter

PRODUCTS/SERVICES

Gross Margin %-Services

Gross Margin %-Products

Gross Margin %

Gross Margin

1,812

47.1%

47.4%

47.4%

47.2%

48.5%

49.2%

48.0%

48.0%

1,561

48.7%

48.4%

48.4%

1,753

44.9%

45.2%

44.8%

44.8%

1,468

48.5%

47.3%

42.5%

42.5%

1,673

44.3%

40.2%

35.2%

35.2%

47.3%

1,201

46.1%

39.1%

39.1%

1,350

41.9%

42.3%

42.3%

43.3%

1,116

42.7%

37.7%

37.7%

44.3%

1,064

40.5%

.Products Margin down (4.8) pts Y/Y

.Services Margin down (3.0) pts Y/Y

.Total Margin down (3.8) pts Y/Y

9

PRODUCTS/SERVICES

Gross Margin %

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

35.0%

36.0%

37.0%

38.0%

39.0%

40.0%

41.0%

42.0%

43.0%

44.0%

45.0%

46.0%

47.0%

48.0%

49.0%

50.0%

47.4%

48.0%

48.4%

44.8%

42.5%

35.2%

39.1%

42.3%

37.7%

47.1%

49.2%

48.7%

45.2%

47.3%

47.3%

46.1%

43.3%

44.3%

47.2%

48.5%

48.5%

44.9%

44.3%

40.2%

41.9%

42.7%

40.5%

Products Gross Margin

Services Gross Margin

Total Gross Margin

Fiscal Quarter

10

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

$0

$300

$600

$900

$1,200

$1,500

$1,800

$514

$446

$463

$457

$468

$423

$411

$393

$421

$958

$939

$995

$989

$1,032

$920

$916

$843

$782

Fiscal Quarter

* Total Operating Expenses differ from SG&A and R&D Expenses because Total Operating Expenses includes IPRD, Restructuring, 

& Intangible Impairment charges.

Year/Year Change

R&D / SG&A Expense*

SG&A

R&D

(20)% Y/Y decrease

(12)%

(3)%

(2)%

(2)%

2%

(3)%

(9)%

(15)%

(20)%

11

Demand Metrics

Year/Year Growth

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

0

500

1,000

1,500

2,000

2,500

3,000

Fiscal Quarter

Deferred Revenue at $3.0B

*   Book to Bill Ratio assumes Services ratio 1:1

**  Services Backlog based on three month backlog horizon

Book to Bill Ratio & Backlog

9%

14%

24%

6%

8%

9%

(4)%

5%

2%

Q408

Q309

Q409

Book to Bill Ratio*

1.00

1.00

0.99

$1,936

$1,837

$1,785

Product & Services

Backlog ($M) **

12

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

$0

$700

$1,400

$2,100

$2,800

PRODUCTS/SERVICES

Fiscal Quarter

Year/Year Change

Deferred Revenue

Services Deferred Revenue

(% of Total)

Products Deferred Revenue

(% of Total)

Products Deferred Revenue up 10% Y/Y

Services Deferred Revenue down (2)% Y/Y

9%

78%

22%

22%

14%

22%

22%

78%

24%

71%

29%

29%

6%

71%

29%

29%

8%

69%

31%

31%

9%

69%

31%

31%

(4)%

65%

35%

35%

5%

66%

34%

34%

2%

67%

33%

33%

13

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

$0

$1,000

$2,000

$3,000

$4,000

Fiscal Quarter

North America/ Europe/ Emerging

Markets/ APAC*

Revenue

-Europe         

(% of Total)

Revenue

-APAC       

(% of Total)

Revenue

-North

America (% of Total)

Revenue -

Geo

North America down (33)% Y/Y

Europe down (29)% Y/Y

Emerging Markets down (31)% Y/Y

APAC down (29)% Y/Y

* Effective Q1FY09, we began utilizing revised geographic groupings. Percentage of total revenue figures have been adjusted to reflect the change in the compilation of the countries that make up each of our

geographic regions.

3,835

12%

12%

31%

13%

44%

44%

3,219

43%

43%

32%

13%

12%

12%

3,615

12%

12%

34%

15%

39%

39%

3,266

13%

13%

34%

14%

39%

39%

3,780

12%

12%

33%

14%

41%

41%

Revenue

-Emerging

Markets  (% of Total)

12%

12%

32%

15%

41%

41%

2,990

3,220

11%

11%

33%

17%

39%

39%

2,614

12%

12%

32%

16%

40%

40%

2,625

12%

12%

34%

14%

40%

40%

14

Non-GAAP Calculation of Net Income

GAAP net income (loss)

329

89

260

(34)

88

(1,677)

(209)

(201)

(147)

Non-GAAP adjustments:

Purchased IPRD

0

0

1

24

6

0

0

3

0

74

74

74

76

86

80

72

72

72

Stock based compensation

48

48

52

57

57

49

52

49

42

Restructuring charges

15

113

32

14

104

63

222

46

64

0

0

0

0

0

1,445

0

0

15

(Gain) loss on equity investments, net

(1)

(22)

0

0

(10)

(8)

3

(3)

0

Settlement income

0

0

0

0

(45)

0

0

0

(47)

Tax effect of non-GAAP adjustments

(7)

(17)

(10)

(5)

(11)

(17)

(26)

(18)

(20)

Non-GAAP net income (loss)

458

285

409

132

275

(65)

114

(52)

(21)

$0.50

$0.32

$0.50

$0.17

$0.35

($0.09)

$0.15

($0.07)

($0.03)

Change vs. prior year (%)

455.6%

190.9%

56.3%

(5.6%)

(30.0%)

(128.1%)

(70.0%)

(141.2%)

(108.6%)

Change vs. prior quarter (%)

177.8%

(36.0%)

56.3%

(66.0%)

105.9%

(125.7%)

266.7%

(146.7%)

57.1%

Q407

Actuals

Q108

Actuals

Q208

Actuals

Q308

Actuals

Q408

Actuals

Q109

Actuals

Q209

Actuals

Q309

Actuals

Q409

Actuals

Amortization of acquisition related

intangibles

Impairment of goodwill and intangible

assets

Diluted Non-GAAP net income

(loss) per share

15

Server Metrics

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

0

20

40

60

80

100

120

Total Server Units

Year/Year Change

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

0

5

10

15

20

25

30

35

x64* Server Units

Year/Year Change

Fiscal Quarter

Fiscal Quarter

* x64 servers include x86 32-bit and x64 64-bit servers and blades

0%

(11)%

7%

(5)%

13%

1%

26%

6%

2%

28%

2%

39%

15%

(9)%

(26)%

(14)%

(34)%

(13)%

16

Investor Relations

http://www.sun.com/investors

Investor Relations

http://www.sun.com/

investors