Sun Microsystems swings to a profit

Sun Microsystems Inc. posted a fiscal fourth-quarter profit that beat Wall Street’s expectations as the server and software maker benefited from lower expenses and increased adoption of its open-source operating system. Shares jumped more than 10%.

Sun said it earned $329 million, or 9 cents a share, for the quarter ended June 30. That contrasts with a loss of $301 million, or 9 cents, a year earlier.

Revenue was $3.84 billion, a slight increase from the $3.83 billion in sales the Santa Clara, Calif.-based company had last year.

Excluding stock-based compensation and other one-time charges, Sun’s net income was still 9 cents a share, 4 cents above the average estimate from analysts polled by Thomson Financial. Revenue was in line with analysts’ estimates.

It was Sun’s third straight profitable quarter and a sign that the company was emerging from a severe downturn that has caused it to lose more than $5 billion since the dot-com bust.

The company chopped its operating expenses -- which includes research and development and general and administrative costs -- 25% to $1.49 billion compared with a year earlier.

Sun’s shares rose 52 cents, or more than 10%, to $5.41 in after-hours trading. The stock price was down 3 cents to $4.89 before the earnings were released.