Sun Microsystems generated $68 million more revenue for the quarter ended June 30 than it had earlier stated. The company has also appointed two new board members: former Securities and Exchange Commission Chief Accountant Lynn Turner and Sun’s former CFO, Mike Lehman.
Sun made the small revenue adjustment after taking into account expense reductions of $42 million in sales commissions and $19 million in vacation accrual, combined with a $7 million gain from an internal company shipment that had been processed incorrectly. In total, Sun generated revenues of $3.4 billion during the quarter.
Sun has also announced that Lynn Turner, former Chief Accountant of the Securities and Exchange Commission, and Michael E. Lehman, Sun’s former Chief Financial Officer, have accepted appointments to Sun’s board, effective November 7, 2002. Turner and Lehman bring to the board increased accounting insight and experience of finance and operations.
Sun has a strong tradition of fair and transparent disclosure and accounting practices that put the shareholder interests up front, said Scott McNealy, Sun’s Chairman, President and CEO. These two additions will add significant financial and reporting expertise to a strong and operationally experienced board.
Lynn Turner, 50, joined the faculty of Colorado State University in August 2001. He is currently a professor of accounting in the College of Business and Director of The Center for Quality Financial Reporting. Mr. Turner served as the Chief Accountant of the Securities and Exchange Commission (SEC) from July 1998 to August 2001. From June 1996 to June 1998, Mr. Turner was the Chief Financial Officer and Vice President of Symbios, an international semiconductor and storage manufacturer. Before joining Symbios, Mr. Turner was a partner with Coopers & Lybrand, (now PricewaterhouseCoopers). Mr. Turner has served as one of six members of the Panel of Experts for the International Monetary Fund (IMF).
Turner will also join Sun Microsystems’ audit committee effective November 7, 2002. Turner satisfies the new financial expert guidelines under the Sarbanes-Oxley Act of 2002.
Michael Lehman, 52, retired from full-time duties as Sun’s Executive Vice President of Corporate Resources and Chief Financial Officer on July 1, 2002 (and subsequently resigned from his employment September 17, 2002). During his 15 year career at Sun, Mr. Lehman oversaw Sun’s finance, legal, real estate, and information resources functions as well as Sun’s corporate planning and strategy group and its public policy efforts. Previously, Mr. Lehman served as Vice President and Corporate Controller of Sun, where he was responsible for the preparation of the company’s public financial information, overseeing Sun’s financial staff, and coordinating the company’s outlook and budgeting processes.