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.