CNN/Money  
graphic
News > Technology
graphic
Sun Microsystems posts tiny profit
Hardware manufacturer basically broke even but sales were lower than expected.
April 16, 2003: 4:24 PM EDT

NEW YORK (CNN/Money) - Sun Microsystems, a maker of networked computers, reported a small profit in its fiscal third quarter, meeting Wall Street's estimates. But sales were lower than expected.

The company reported net income of $4 million, or zero cents per share, on revenues of $2.8 billion. Analysts were expecting the company to break even on sales of $2.9 billion, according to First Call. Sun reported a loss of $37 million, or a penny per share and sales of $3.1 billion a year ago.

Sun Microsystems has struggled during the past few years due to sluggish demand for high-tech products. But investors are also concerned about Sun's ability to remain a leading player in the server market as more hardware companies are producing servers that run on Microsoft software and the open source operating system known as Linux.

Shares of Sun (SUNW: Research, Estimates) fell 3 cents, or 0.9 percent, to $3.33 in regular trading on Wednesday. The stock fell nearly 4 percent in after-hours trading, according to Island ECN.

Despite the lower than expected sales, Sun's gross margins, a measure of how profitable a company is after wringing out costs of sales, were 44.6 percent, compared to 42.1 percent a year ago.

And the company continues to generate healthy amounts of cash. Sun ended the quarter with $5.5 billion in cash and marketable securities on its balance sheet, up from $5.3 billion at the end of its fiscal second quarter.

Still, the company did not provide sales or earnings guidance for its fiscal fourth quarter in the release. Sun announced in January that it would not provide guidance for the remainder of the year.

Analysts expect Sun to earn 2 cents a share on $3.2 billion in sales in its fiscal fourth quarter, compared to a profit of a penny per share and revenue of $3.4 billion a year ago.  Top of page




  More on TECHNOLOGY
Dark Mail: Email that hides from the NSA
Apple profit soars but iPads slump
City of Tomorrow: How 21st century challenges are being met worldwide with real innovation
  TODAY'S TOP STORIES
Apple profit soars but iPads slump
Microsoft weighed down by ailing Nokia
Beretta relocates fearing stricter state laws




graphic graphic
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.