NEW YORK (Standard&Poor's) May 16, 2007--Sun Microsystems Inc. (BB+/Stable/A-3) recently announced that its board of directors authorized the repurchase of up to $3 billion of outstanding common shares. Standard&Poor's Ratings Services does not expect the share repurchase program to impact its ratings or outlook on Sun. The stock repurchase authorization does not have an expiration date, and we expect the company to fund repurchases predominantly from discretionary cash flow. Annual discretionary cash flow has been consistently positive. In addition, as of April 1, 2007, Sun had cash and marketable securities balances of more than $5.4 billion, and total debt (including capitalized operating leases) of about $2.1 billion.
