Digital Edition

SYS-CON.TV
Good Lord, Sun Returns a Profit!
On a roll after its détente with Intel, Sun Tuesday came in with respectable numbers for a change

On a roll after its détente with Intel, Sun Tuesday came in with respectable numbers for a change and announced that - for some illusive reason - Guernsey-based KKR Private Equity Investors LP had put $700 million in the company in the form of convertible notes.

Sun, which has close to $3.5 billion at hand, said it would use the money for growth. Sun CEO Jonathan Schwartz described the investment as "an opportunistic transaction."

Meanwhile, Sun, which has lost $5 billion in the last four years, reported fiscal Q2 earnings of $136 million, or three cents a share - (cue Handel's Hallelujah Chorus) - when a year ago it lost $223 million, or seven cents a share, a rut it was in for years.

Sun earned the money on revenues up 7% to $3.57 billion, slightly better than the $3.52 billion that Wall Street expected. It credited sales of its Niagara Sparc servers. Its AMD servers were up 46% year-over-year. Storage sucked; revenues were down 6%.

Sun expects revenues this quarter to drop 3%-5% sequentially, or between $3.39 billion and $3.46 billion, because of seasonality and said it would finish the year in June with a 4% operating margin.

It remains to be seen whether it can repeat the exercise and be profitable this quarter, which Sun expects to be "challenging." It is still cutting people and terminated 1,600 jobs in Q2.

About Security News Desk
SYS-CON's Security News desk trawls the world of security for news of software, hardware, products, and services that seems likely to be of interest to infosec professionals and summarizes them for easy assimilation by busy IT managers and staff.

In order to post a comment you need to be registered and logged in.

Register | Sign-in

Reader Feedback: Page 1 of 1

On a roll after its détente with Intel, Sun Tuesday came in with respectable numbers for a change and announced that - for some illusive reason - Guernsey-based KKR Private Equity Investors LP had put $700 million in the company in the form of convertible notes. Sun, which has close to $3.5 billion at hand, said it would use the money for growth. Sun CEO Jonathan Schwartz described the investment as 'an opportunistic transaction.'




ADS BY GOOGLE
Subscribe to the World's Most Powerful Newsletters

ADS BY GOOGLE

Dynatrace is an application performance management software company with products for the informatio...
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Ser...
Having been in the web hosting industry since 2002, dhosting has gained a great deal of experience w...
NanoVMs is the only production ready unikernel infrastructure solution on the market today. Unikerne...
All in Mobile is a mobile app agency that helps enterprise companies and next generation startups bu...
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO Silicon Valley 2019 will cover all of these tools, with the m...
SUSE is a German-based, multinational, open-source software company that develops and sells Linux pr...
Yottabyte is a software-defined data center (SDDC) company headquartered in Bloomfield Township, Oak...
Your job is mostly boring. Many of the IT operations tasks you perform on a day-to-day basis are rep...
Serveless Architectures brings the ability to independently scale, deploy and heal based on workload...
Technological progress can be expressed as layers of abstraction - higher layers are built on top of...
When building large, cloud-based applications that operate at a high scale, it’s important to mainta...
Whenever a new technology hits the high points of hype, everyone starts talking about it like it wil...
Big Switch's mission is to disrupt the status quo of networking with order of magnitude improvements...
Lori MacVittie is a subject matter expert on emerging technology responsible for outbound evangelism...
Every organization is facing their own Digital Transformation as they attempt to stay ahead of the c...
"Calligo is a cloud service provider with data privacy at the heart of what we do. We are a typical ...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, disc...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (No...
Chris Matthieu is the President & CEO of Computes, inc. He brings 30 years of experience in developm...