Y2K spending freeze fails to chill Sun
Profits, revenue sees double-digit growth
Sun cocked a snook at rival hardware vendors hit by a Y2K-inspired downturn in hardware spending when the it announced its Q2 2000 results yesterday. The smug server company posted profits for the period of $353 million, up 35 per cent on the same period last year. That translates to 21 cents a share, a smidge above the 20 cents a share Wall Street had anticipated. The quarter, which ended on 26 December 1999, saw revenues reach $3.55 billion, a 27 per cent increase on the $2.784 billion Sun posted for Q2 1999. Sun CEO Scott McNealy attributed the double-digit increases in profits and sales to continued spending on equipment for Internet applications -- sales made in spite of fears that customers would rein in spending on new hardware in order to deal with Y2K issues. Y2K has had its effect on the industry. Fujitsu Siemens certainly blamed customers' Millennium Bug preparations on its downturn in sales. McNealy claimed Sun saw no slowdown in sales during the quarter. The only exception proved to be sales to UK financial services companies, which probably was a Y2K-related issue. ®
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