Feeds

Sun pumps out a profit as shipments continue decline

Selling less for more

Choosing a cloud hosting partner with confidence

Sun Microsystems failed to blow away investors with its first quarter results but did hand in a decent performance.

The server maker boosted revenue by close to one per cent, hitting $3.22bn in sales. It also posted net income of $89m, which compares to a net loss of $56m in the same period last year. Sun managed to turn the profit even with $113m in restructuring charges from layoffs.

Sun has now cleared a profit in four straight quarters.

Crucially, Sun boosted its gross margins by 5 percentage points to 48.5. The company also brought in $574m in cash during the quarter, leaving it with $5.19bn to blow on another tape storage vendor.

Over the past couple of quarters, Sun has enjoyed product revenue growth but suffered from declining overall shipments. That trend played out again in the first quarter.

Sun's product revenue inched higher to $1.98bn from $1.96bn, while services revenue increased to $1.24bn from $1.23bn. Still, shipments of lower-end gear declined.

Overall, Sun's server shipments fell 2 per cent year-on-year. And Sun's still young x86 business only grew 7 per cent.

CEO Jonathan "My Little Pony" Schwartz bragged that Sun did manage to move a lot of high-end systems during the quarter and that it pushed plenty of identity management software. Schwartz continued to hit on the idea that customers are tending to buyer larger, "more richly configured" systems instead of 1U units in part because of the trend toward virtualization.

Sun's shares dipped slightly in after-hours trading, following the release of the first quarter results.

Looking forward, Sun expects revenue growth to grow in the "low to mid single digits". ®

Register editor Ashlee Vance has just pumped out a new book that's a guide to Silicon Valley. The book starts with the electronics pioneers present in the Bay Area in the early 20th century and marches up to today's heavies. Want to know where Gordon Moore eats Chinese food, how unions affected the rise of microprocessors or how Fairchild Semiconductor got its start? This is the book for you - available at Amazon US here or in the UK here.

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.