Sun Micro Posts Profit Amid Strong Server Sales
Sun Microsystems reported a quarterly profit on Monday compared with a year-earlier loss amid strong sales of its high-end computers.
Net income in the company's fiscal first quarter was $89 million, or 3 cents per share, compared with a net loss of $56 million, or 2 cents per share, in the year-earlier period.
Revenue advanced to $3.22 billion from $3.19 billion.
In after-hours trading, shares of Sun were trading down more than 3 percent after closing Monday at $5.71.
Net income included $113 million, or 3 cents per share, of restructuring charges. Analysts, on average, had expected revenue of $3.26 billion, according to Reuters Estimates.
Shares of Sun Micro, up 3.3 percent this year through Friday, fell 2.3 percent in extended trading after closing up 2 percent at $5.71 on Nasdaq.
Sun Micro, based in Santa Clara, Calif., said its gross profit margin increased 5 percentage points to 48.5 percent from the year-earlier period.
Sun, led by Chief Executive Jonathan Schwartz, has been staging a recovery by changing its product line, selling server computers powered by chips from Advanced Micro Devices and Intel
The company benefited from strength in its high-end systems lineup, Schwartz said in a statement, as well as growth in subscription-based identity management software and greater adoption of its Solaris 10 operating system.
Sun competes in the market for server computers and data-storage gear with bigger rivals International Business Machines and Hewlett-Packard