Sun earnings beat Wall Street expectations

Sun Microsystems' second-quarter earnings beat Wall Street expectations this week when the workstation maker reported a 25% year-over-year rise in net earnings. Excluding one-time acquisition charges, Sun's net income in the second quarter, ended Dec. 28, was $US223.2 million, on revenue of $2.45 billion. Revenues were up 18% compared with the second quarter of fiscal 1997, the company said in a statement. Earnings per share -- excluding one-time charges related to the acquisitions of Encore Computers storage products business and of Chorus Systems SA -- was 57 US cents, an increase of 24% compared with last year's earnings per share of 46 cents, according to the company. Analysts polled by First Call had expected Sun to post earnings per share of 54 cents.

Sun Microsystems' second-quarter earnings beat Wall Street expectations this week when the workstation maker reported a 25% year-over-year rise in net earnings.

Excluding one-time acquisition charges, Sun's net income in the second quarter, ended Dec. 28, was $US223.2 million, on revenue of $2.45 billion. Revenues were up 18% compared with the second quarter of fiscal 1997, the company said in a statement. Earnings per share -- excluding one-time charges related to the acquisitions of Encore Computers storage products business and of Chorus Systems SA -- was 57 US cents, an increase of 24% compared with last year's earnings per share of 46 cents, according to the company.

Analysts polled by First Call had expected Sun to post earnings per share of 54 cents.

Including one-time charges, net income for the quarter was $149.4 million, and earnings per share totaled 38 cents.

"Rumors are that Unix is dying, if this dying it sure feels good!" Scott McNealy, Sun's CEO, said in a statement.

Sun and other Unix vendors have recently been feeling the heat from lower-cost Windows NT-based PC workstations. Earlier this week, Sun announced two new workstation lines.

At its current rate, Sun expects to spend more than $1 billion in research and development in fiscal 1998, the company said.

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