Sun back in the black

Aug 02, 2007

Sun will be closing its fiscal year 2007 (ending June 30) with a net profit of US$ 473 m compared to losses of US$ 864 m in the previous year.

Sun's return to positive figures did not start until the second quarter of the 2007 fiscal year, announcing a net profit of US$ 126 m in its quarterly report at the end of October 2006 after sustaining a loss of US$ 56 m in the first quarter. The company has been through a crisis in recent years and responded with mass redundancies.

Annual turnover was by 6.2 percent to US$ 13.9 b compared to last year, where turnover was US$ 13.1 b.

Sun attributes its growth in the past few quarters to Internet and multi-platform server offers, and to increasing acceptance of Solaris. In recent reports Sun has also drawn attention to its virtualization solutions, besides Solaris, which help customers reduce overheads.

An operating margin of four percent sees Sun drawing closer to its self-proclaimed goal of ten percent returns by 2009.

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