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Sun Warms a Bit

See what cutting costs can do. Sun nearly doubled its profits in the December quarter to $260 million, or 31 cents a share, better than thought, on flat revenues of $3.6 billion, up only 1.4%. Its margin was up 3.5 points to 48.5%. Server revenue was down 2.4% to $1.6 billion, but support and storage are looking cheerier, both up 4% to $1 billion and $655 million, respectively. Deferred revenues are up 24% to $2.7 billion. It forecasts sales growth in the low to mid-single digits with revenues up 5% this half.


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