Hi Marvin - I held my nose and bought a few $85 shares to go with my $10 shares. I was never very good at timing my buy's but I figure my overall investment should do well. My average cost per share is now at $25. From the earnings report, it appears that SUNW's management is implementing their business plan quite well and the outlook for the industry is excellent, growing at a higher rate than SUNW's current growth of 30%.
Here is an article from today's Technology News
01/20/00, 5:59 p.m. ET
Sunny Profits For Sun
Micro's Second Quarter
By Reuters
PALO ALTO, Calif -- Sun
Microsystems, a developer of
computerworkstations, servers, and
software for networked computing,
said Thursday its fiscal
second-quarter net income rose about
30 percent on strong demand for its
workgroup andhigh-end servers and
services.
Palo Alto, Calif.-based Sun said profits rose to
$353 million from $273 million, excluding
one-time items in the year-ago quarter.
Earnings per share were 21 cents, up 24
percent, excluding one-time items in the
year-ago quarter. The consensus on Wall
Street was for earnings of 20 cents a share,
according to First Call/Thomson Financial.
Including acquisition-related charges, Sun's
earnings in last year's second quarter were
$261 million, or 16 cents a share.
Revenues rose 27 percent to $3.55 billion in
the quarter ended Dec. 26, 1999, from $2.8
billion last year. In the first quarter, Sun had
forecast that revenue growth would be slightly
above 20 percent in the second quarter, due to
the level of its backlog of orders in the first
quarter.
"We are very pleased to have set an all-time
record for quarterly revenues this early in the
fiscal year," Sun CFO Michael Lehman said in
a statement. "During the quarter, we
experienced particularly strong demand for our
workgroup servers [and] high-end servers and
services.'
Sun has made big inroads in the past year,
marketing its servers and software to many
Internet companies, including startups, with its
"dot com" campaign. Sun's servers power
many heavily trafficked Internet sites, such as
eBay.
==========================================================
Sun Microsystems Inc (SUNW)
SUN MICROSYSTEMS INC chief financial officer Michael Lehman said that he expects
the company's revenue growth in the second half of fiscal 2000 to be similar to the first
half, or around 25%. Lehman said that based on the company's backlog of orders and
indications from customers, he expects overall revenue growth rate in the second half to be
about the same as in the first half of fiscal 2000, or about 25%. "However if there are
significant opportunities beyond these assumptions, we will take advantage of them,"
Lehman told analysts on a conference call. (Reuters 05:16 PM ET 01/20/2000)
===========================================================
This was also very good news. I hope SUNW has other deals in the works with ENRON, something perhaps to do with virtural private networks....NOTICE that SUNW also got the storage hardware and software business too not EMC!
Sun Microsystems Inc (SUNW)
ENRON CORP's Internet communications unit, and SUN MICROSYSTEMS INC said
they had agreed to a deal worth about $350 million to Sun to accelerate the adoption of
high-speed Internet services. The companies said Sun had agreed to provide the computers
and data storage necessary for Enron to launch an ambitious expansion plan to build out its
Internet-based fiber and satellite communications network. The deal calls Enron's Enron
Broadband Services unit to buy 18,000 Sun Netra computers servers that will be used to
aggressively build out the communications network of Enron to 2,000 locations worldwide.
(Reuters 04:02 PM ET 01/20/2000) |
