Sun posts fourth consecutive quarter in the black, but 1Q sales fall short of estimates
Associated Press | Nov 5, 07 12:00 AM CST
Sun Microsystems Inc. swung to a first-quarter profit that matched Wall Street's expectations Monday, marking the server and software maker's first full year in the black since the dot-com meltdown.
Bolstered by stronger sales of its high-end servers and improved cost controls, the Santa Clara, California-based company's net income was $89 million (euro61.43 million), or 3 cents per share for the three months ended Sept. 30, matching the average estimate of analysts surveyed by Thomson Financial.
During the year-ago period, Sun lost $56 million (euro38.65 million), or 2 cents per share.
The company is aggressively cutting costs and jobs in its bid to return to consistent profitability, booking $113 million (euro78 million) in restructuring expenses for the quarter, which reduced net income by 3 cents per share.
Sun's revenue fell slightly short of Wall Street's estimate, which weighed on the stock in after-hours trading. The company rang up $3.22 billion (euro2.22 billion) in sales, a slight uptick of 1 percent from last year but still short of the $3.27 billion (euro2.26 billion) analysts were expecting.
Sun shares gained 11 cents, or 2 percent, to close at $5.71. After the results were released, the stock price fell 15 cents to $5.56.
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