Feeds

Sun shrugs off product slip in Q2

Services carry the load

Secure remote control for conventional and virtual desktops

Despite falling product revenue, Sun Microsystems posted decent enough second quarter results.

Sun's overall revenue rose 1.4 per cent year-over-year to $3.62bn. But it was Sun's services division and not the core hardware units that did the dirty work. Product sales fell to $2.25bn from $2.26bn in the same period last year. Meanwhile, services revenue rose to $1.37bn from $1.31bn.

Sun also benefited from effective cost-cutting measures and higher gross margins. These factors helped the company post net income of $260m for the second quarter, which compares to net income of $133m last year. The 2008 second quarter net income total includes $32m in restructuring charges.

"Today's results clearly demonstrate steady progress against our financial targets and highlight the accelerating demand set to fuel growth in the back half of the fiscal year," said Jonathan Schwartz, CEO of Sun Microsystems. “Headlining the results were improved margins and strong bookings along with double digit growth in emerging markets including India, China, Latin America, Eastern Europe, the Middle East and Africa."

Sun has been suffering from falling shipments, but has offset some of those losses by moving higher-margin gear. In addition, the company has been trying to remove costs in every way possible, including layoffs and the reworking of its internal IT systems.

Investors earlier this month received the second quarter basics, when Sun released preliminary results for the period in conjunction with its announcement on the $1bn MySQL acquisition.

Sun's shares – already up close to nine per cent during regular trading – rose two per cent in the after-hours markets after investors received today's more detailed Q2 report. ®

Boost IT visibility and business value

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.