January 23, 2007
Today, Sun Microsystems posted a quarterly profit versus a comparable loss for the same period in 2006,
as revenue rose 7 percent, propelled by increased sales of its high-end servers.
Overall, Sun said it had a fiscal second-quarter net profit of $126 million, or 3 cents per share, compared
with a net loss of $223.0 million, or 7 cents per share in 2006.
Revenue rose to $3.57 billion from $3.34 billion.
According to Reuters Estimates, on average, Wall Street analysts expected Sun to report no per-share earnings,
on revenue of $3.52 billion.
In October 2006, Sun Microsystems said it expected that revenue would rise "in the high single digits" in
percentage points in the second quarter from the first quarter.
Yesterday, Sun said that it would use microprocessors from No. 1 chipmaker Intel, and that the two companies
had entered a broad engineering relationship to ensure that Sun's Solaris operating system runs optimally on
Intel Chips.
However, the company said it will continue to buy microchips from Intel rival AMD (Advanced Micro Devices).
Many analysts, including Deutsche Bank's Chris Whitmore have said the key to Sun's financial turnaround and
return to profitability and overall growth will lie its ability to leverage its intellectual property in software
into revenue gains.
Sun's stock rose 29 percent last year, compared with an 11 percent boost in the Merrill Lynch Technology 100
Index, of which Sun Microsystems is a member.
Source: IT World Canada
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