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Sun beats Street, splits stock
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January 21, 1999: 4:30 p.m. ET
Sun Microsystems posts 22% jump in 2Q profits, sets two-for-one stock split
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NEW YORK (CNNfn) - Sun Microsystems Thursday posted a second-quarter profit just ahead of Wall Street estimates and set a two-for-one stock split.
Sun's net income for the second quarter ended Dec. 27 was $272.3 million, up 22 percent from the previous year's results (excluding acquisition-related charges).
Earnings per share were 67 cents, an 18 percent increase over year-ago results (excluding charges).
Analysts polled by First Call expected the company to earn 66 cents a share for the quarter.
Sun's revenue grew 14 percent to $2.8 billion.
During the quarter, acquisition-related charges for in-process research and development totaled $12 million in connection with the acquisitions of Beduin Communications, Inc. and i-Planet, Inc.
Including these charges, net income was $261.1 million and earnings per share totaled 64 cents per diluted share.
Sun also recorded an increase of $3.2 million to its income tax provision due to the structure of its i-Planet transaction.
"The team really delivered," said Scott McNealy, Sun's chief executive officer. "Not only did we successfully bring on line our new ERP systems, but we also introduced new products and partnerships during the quarter."
Sun's stock split, to be effected in the form of a stock dividend, is subject to shareholder approval and will be payable to shareholders of record.
For the first six months of fiscal 1999, Sun reported net income of $470 million, or $1.17 a share excluding the charges, up 22 percent over the same period last year.
Revenue reached $5.3 billion, up 16 percent over last year.
Shares of Sun (SUNW) finished down 4-1/2, more than a 4 percent drop, at 100-7/8 Thursday ahead of the news. The company's stock edged down alongside a broader slide in the technology sector. 
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Sun Microsystems
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