Sun Micro Profit Up 39% on Net Boom
Sun Microsystems Inc. posted a 39% jump in earnings for its fiscal first quarter to $271.1 million, or 33 cents a share, as it continued to benefit from rising demand for its Internet computer systems.
The results surpassed the 31-cents-a-share forecast by analysts surveyed by First Call/Thomson Financial.
Sun kept sales and earnings on track by selling more high-powered computers used by Internet companies including America Online Inc. and auctioneer EBay Inc.
“Our success in the first quarter came at the expense of our traditional competitors,” Chief Executive Scott McNealy said in a statement. “We gained share in many of our key markets, especially in servers for the Internet.”
Unlike other large computer makers, Sun never adopted Microsoft Corp.’s Windows operating system, which has proved less reliable than Sun’s Unix-based Solaris for computers running online businesses.
Sun’s sales grew 25% to $3.12 billion in the quarter, and orders, an indicator of future sales, jumped 19%.
The earnings figures did not include a one-time charge of $3.5 million in the latest quarter or a one-time charge of $80 million a year ago.
The results were released after the close of trading. Sun closed up 3 cents at $89.41 on Nasdaq.
At a Glance
Other earnings, excluding one-time gains or charges unless noted, include:
* DoubleClick Inc.’s third-quarter loss widened to $5.4 million, or 13 cents a share, from $4.7 million, or 14 cents, a year ago, as revenue more than doubled to $44.9 million from $20.8 million. Analysts expected a loss of 14 cents a share, according to First Call, but some unpublished estimates called for a smaller loss of 10 cents.
* Iomega Corp. posted an operating profit of $7 million, or 2 cents a share, for the third quarter, compared with a loss of $12 million, or 3 cents, a year ago. Revenue fell 9% to $356.6 million on lower sales of its Jaz drives and disks, though Zip drive shipments rose 23%. Analysts were expecting a loss of 3 cents. The results exclude one-time charges and taxes that would bring the results to a loss of $78.3 million, or 29 cents a share.
* Quantum Corp. said its operating profit plunged in the fiscal second quarter to $9 million from $17.6 million a year ago, as rising sales in its tape and storage business failed to make up for steep price cuts in its hard-drive unit.
