Sun goes back into black
Back in the black as US sales increase 20%
Sun returned to the black with its latest quarterly results yesterday, which show a recovery in its fortunes, particularly in the US where sales grew 20 per cent. It has returned to profitability despite the continuing downturn in the IT market, and the slump in telecoms spending.
Sun's Q4 revenues came out at $3.4 billion, up 10 percent compared to $3.1 billion in Q3 2002, but down 17 per cent on sales of $4 billion for Q4 2001. Net income for Q4 2002 was $20 million, compared with a loss of $88 million for Q4 2001.
For the full 2002 fiscal year, Sun reported revenues of $12.5 billion, down 32 percent on its revenues in 2001. Net loss for the 2002 was $628 million.
Scott McNealy, Sun's chairman, chief executive, and president, said he was proud of his team for achieving profitability this quarter and praised their "integrity", "talent" and "tenacity".
He cited improved low-end server and gains in sales of its high-end UltraSPARC III processor-based products, particularly, the Sun Fire 12K server, as a highlight of Sun's Q4. McNealy also pointed Sun's revamped storage line-up and software releases, such as Solaris 9 and StarOffice 6, as key to its future growth in the enterprise market. ®