Feeds

Sun shrugs off product slip in Q2

Services carry the load

The next step in data security

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. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
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.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.