July 22, 1999
Sun Micro Beats Estimates
For Period as Sales Rose 22%
By an INTERACTIVE JOURNAL Staff Reporter
PALO ALTO, Calif. -- Sun Microsystems Inc. edged past analysts'
expectations for its fiscal fourth quarter, as strong Internet growth
continued to drive demand for Sun's powerful computers, which manage
Internet traffic, e-commerce and corporate networks.
For the quarter ended June 30, the company
posted net income of $395.2 million, or 48
cents a diluted share, up from $273 million, or
35 cents a share. The year-ago period
included a charge; without the charge, profit
was $287.8 million, or 37 cents a share.
For the latest period, analysts surveyed by
First Call/Thompson Financial were expecting
a profit of 46 cents a share.
Revenue, meanwhile, rose 22% to $3.51 billion from $2.88 billion a year
ago.
Sun's stock had slumped in April after the company warned that possible
turmoil in the industry, particularly uncertainties related to the year-2000
problem, could hurt Sun's profit and revenue growth in the second half of
this year. But the stock has since recovered.
Thursday, amid a slump in technology stocks, Sun shares slid $3.50 to
close at $67.1875 on the Nasdaq Stock Market. The results were
announced after the close of trading.
"We had a terrific fourth quarter; our team really delivered," said Chief
Executive Scott McNealy in a statement.
The company said it had record shipments during the most-recent quarter
and expects growth in its e-commerce and service provider markets.
"Our enterprise services continue to grow as we provide customers the
expertise to architect, design and maintain the dot-com business," Mr.
McNealy said.
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