Strong Sales Push Profit Up 18% at Sun

Sun Microsystems Inc., one of the biggest makers of computers that run the Internet, said Thursday that fiscal second-quarter earnings, ranked by year-over-year earnings-per-share growth, rose 18%, fueled by robust sales of its powerful machines.

Profit before a charge rose to $272.3 million, or 67 cents a share, from $223.2 million, or 57 cents, in the year-earlier period. Sun was expected to earn 66 cents in the quarter ended Dec. 27, the average estimate of analysts polled by First Call Corp.

Shares of Sun, which also declared a 2-for-1 stock split Thursday, have almost doubled in the last three months on optimism that the market for computers used by Internet service providers and for sites on the World Wide Web will remain hot. Sun’s sales rose 14% to $2.78 billion from $2.45 billion.

Palo Alto-based Sun reported earnings after the close of regular U.S. trading. Its shares fell $7.13 to close at $98.25 on Nasdaq.

At a Glance

Other earnings, excluding one-time gains and charges unless noted:

* Electronic Arts Inc., the No. 1 maker and distributor of video game software, said fiscal third-quarter earnings rose 42%, beating estimates, on strong holiday sales of sports-related games. The San Mateo-based company earned $72.5 million, or $1.15 a share, in the period ended Dec. 31, compared with $51.2 million, or 84 cents, before a gain, a year earlier. It was expected to earn $1.09 a share. Revenue rose 33% to $520.2 million from $391.2 million.

* Redwood City-based Excite Inc., the Internet business that is being acquired by @Home Corp., reported fourth-quarter profit in line with most forecasts. Excite said it earned $2.6 million, or 4 cents a share, compared with a loss in the year-ago quarter of $8.7 million, or 26 cents. Sales totaled $54.1 million, up from $20.5 million.

* San Marino-based East West Bancorp Inc., privately held parent of East West Bank, reported record fourth-quarter net income of $6.5 million, or 27 cents a share, compared with $2.9 million, or 12 cents, a year ago.

* Genentech Inc. said fourth-quarter profit fell 12% from a year ago, when the biotechnology company had substantial one-time revenue from one customer. The South San Francisco-based firm earned $37 million, or 28 cents per diluted share, from $41.5 million, or 33 cents per diluted share, a year earlier. Revenue for the quarter rose to $304.3 million from $277.1 million. Genentech’s fourth-quarter 1997 results reflected revenue from a deal with Sumitomo Pharmaceuticals Co.

* San Francisco-based Hambrecht & Quist Group said fiscal first-quarter profit rose a better-than-expected 8% to $12.1 million, or 47 cents a share, from $11.2 million, or 42 cents, a year earlier. Analysts expected 23 cents. Revenue rose to $99.9 million from $91.6 million.

* IDG Books Worldwide Inc., the Foster City-based publisher of the “For Dummies” series, reported fiscal first-quarter net income of $3.2 million, or 22 cents a share, compared with $2.5 million, or 23 cents, a year earlier. Revenue rose 13% to $37.3 million from $33 million.

* San Francisco-based Providian Financial Corp. said fourth-quarter profit rose a greater-than-expected 76% as the nation’s largest issuer of secured credit cards added customers. Net income rose to $94.9 million, or 66 cents a share, from $54 million, or 37 cents, a year earlier. That beat the average analyst estimate of 62 cents. Revenue rose 82% to $757.5 million.

* Emeryville-based Sybase Inc. said fourth-quarter profit beat analysts’ estimates. Earnings before a charge were $7.9 million, or 10 cents a share, contrasted with a loss of $25.5 million, or 32 cents, a year earlier. Analysts expected 5 cents a share. Revenue rose 4.2% to $232.5 million.

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California Earnings

A sampling of companies reporting quarterly earnings Wednesday, and expected to report today, ranked by year-over-year earnings-per-share (EPS) growth, compiled by First Call:

California Companies Reporting Thursday

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Analysts’ Pct. above/ 1997 Ticker estimated Actual below 4th-qtr. Company symbol EPS EPS estimate EPS QLogic QLGC $0.70 $0.76 +9% $0.44 Xylan XYLN 0.23 0.23 0 0.14 PFF Bancorp PFFB 0.29 0.37 +28 0.28 Pacific Crest Cap. PCCI 0.40 0.42 +5 0.33 Sun Microsystems SUNW 0.66 0.67 +2 0.57 CVB Financial CVB 0.36 0.33 -8 0.32 Franklin Resources BEN 0.40 0.40 0 0.52 Varian Associates VAR 0.19 0.04 -79 0.64 IndyMac Mortgages NDE -0.88 -0.98 NM 0.48 Newhall Land NHL -0.10 -0.05 -50 NA

Year- over-year Company % change QLogic +73% Xylan +64 PFF Bancorp 32 Pacific Crest Cap. +27 Sun Microsystems +18 CVB Financial +3 Franklin Resources -23 Varian Associates -94 IndyMac Mortgages NM Newhall Land NM

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Reporting Today

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Ticker Consensus Year-ago Predicted Company symbol EPS estimate quarter pct. chg. Edison International EIX $0.44 $0.37 +19 Dames & Moore DM 0.30 0.29 +2 Sun Microsystems SUNW 0.66 0.57 +16 Walt Disney DIS 0.24 0.37 -35 DAOU Systems DAOU 0.02 0.06 -67 Varian Associates VAR 0.19 0.64 -70 IndyMac Mortgage NDE -0.88 0.48 NM Newhall Land & Farming NHL 0.10 NM NM

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* NM = not meaningful. A loss in any period makes percentage change not calculable.

Note: Year-over-year growth and percentage changes are based on earnings-per-share figures and may differ from percentage changes based on total profit.

For more information via the Internet, check https://www.firstcall.com.