Sun Microsystems

Maker of workstations, servers and software

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4150 Network Circle
Santa Clara, CA 95054
Employees: 37,500
CEO: Jonathan Schwartz
Stock Symbol: SUNW


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Sun Microsystems is a leading maker of computer workstations, servers, software and storage. Sun is the developer of the Solaris operating system and the Java programming language.

Sun is a leader in networked computing and its workstations are high-powered systems used primarily for corporate, educational and scientific use. The company's servers are used to power Internet sites and data storage.

The company acquired StorageTek, a data storage company, in August, 2005 for over $4 billion.

For fiscal 2005, Sun had revenues of $11.1 billion and a net loss of $107 million.

Founder and long-time CEO Scott McNealy stepped down earlier this year and President Jonathan Schwartz has replaced him.

The company announced it will reduce its employee headcount by 4,000 to 5,000 people (11-13%) over the next six months and is selling its Newark campus and exiting leased facilities in Sunnyvale, CA. The company will continue operation of its two major Bay Area campuses, Menlo Park and Santa Clara, CA. The actions could save the company $400-590 million.


Sun was incorporated in February 1982, with four employees who were Stanford graduate students, Vinod Khosla, Scott McNealy, Bill Joy, and Andy Bechtolsheim. They would introduce the first workstation and it included TCP/IP, now known as the Internet protocol suite. The name SUN stood for Stanford University Network. Sun would go public in 1986.

Sun would introduce Java technology in 1995.


Sun provides health benefits for you and your eligible dependents, which includes your spouse or domestic partner and your children and/or the children of your domestic partner.
Choose from several health care options:
- UnitedHealthcare Options PPO - This is a preferred provider organization, which offers in-network and out-of-network coverage.

- UnitedHealthcare Select EPO - This is an Exclusive Provider Organization which only offers in-network coverage through a network of doctors and hospitals. You choose a primary care provider to coordinate your care.

- Out-of-Area Option - This option is offered in areas where the UnitedHealthcare Options PPO is not available.

- HMO options - Kaiser Permanente in CA and CO or Harvard Pilgrim Health Care HMO in New England

Dental. You can choose the MetLife Dental High or Low Plan, or you can waive coverage.

- Short-term Disability - replaces 100% of your pre-disability income for up to 90 days every rolling-back 12 month period for one or more disabilities. A rolling-back period is the 12 months immediately preceding the start of the current disability.

- Long-term Disability - replaces 50%, 60% or 70% of your pre-disability income (depending on your Sun Flex enrollment election), up to a maximum benefit of $15,000 per month if you are disabled due to illness or injury. Begins after 90 consecutive days of total disability.

- Life Insurance - designed to pay a benefit to your beneficiary if you die while you are employed at Sun.
- Business Travel Accident - provides up to $400,000 for accidental death and dismemberment from covered accidents occurring anytime you are traveling on Sun-approved business.


401(k) Plan. Contribute from 1% to 30% of your before-tax pay. Sun matches your contributions dollar for dollar on the first 3% of pay you contribute, plus 50 cents on the dollar for the next 2% of pay you contribute.

- Choose to invest your contributions among several funds

- Can take a loan of up to 50% of your account balance, up to a maximum of $50,000

- Always 100% vested

Employee Stock Purchase Plan
- Contribute up to 10% of your pay to purchase stock

- Purchase price is 85% of fair market value either on the first days of the six-month purchase period, or on the stock purchase date, whichever is lower

Flexible Spending Accounts. There are two Sun Flex Spending Accounts that let you pay for certain health and/or dependent care expenses on a before tax basis:
- Health Care Spending Account for eligible medical, dental, prescription drug, vision and mental health care expenses incurred by you or your eligible dependents: contribute up to $4,000 to your Health Care Spending Account per calendar year

- Dependent Care Spending Account, called SunCare, for eligible dependent day care expenses) contribute up to $5,000 to your SunCare (dependent care) account per calendar year


- Holidays - Sun generally observes 13 holidays per year
- Vacation - Based on years of service:1-3 years, 11 days; 4-7 years, 16 days; 8 or more years, 21 days
- Incidental Absence - replaces 100% of your pay for up to five work days per calendar year in case illness or personal business keeps you from working.

Updated June 3, 2006

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