Monday, July 30, 2007
Sun Microsystems turns a profit
San Francisco - Long-struggling server maker Sun Microsystems may have turned the corner, posting quarterly profits of 329 million dollars or 9 cents a share Monday, compared with a year- earlier net loss of 301 million dollars, or 9 cents a share.
Revenue at the world's third-largest seller of servers rose to 3.84 billion dollars from 3.83 billion dollars.
The robust earnings marked the third consecutive quarter of profit for the company, which had endured a lengthy downturn and five consecutive quarters of losses.
For the full fiscal year, the company reported revenue of 13.87 billion dollars, an increase of 6.2 per cent over fiscal year 2006.
The healthy results reflected the result of a sweeping programme to cut costs at the company, including the firing of 3,700 workers a year ago. Sun said it cut its overall operating expenses by almost 500 million dollars in its fourth quarter, to 1.49 billion dollars.
'With a solid strategy and consistent execution, we delivered on our commitment to achieve at least 4 per cent operating margin in the fourth quarter,' chief executive Jonathan I Schwartz said. 'This milestone marks significant progress toward our longer-term growth plan of at least 10 per cent operating margin for the full fiscal year 2009.' (Deutsche Presse-Agentur)