Sun Swings to Profit
In the recently ended fiscal first quarter, for instance, Sun said its 48.5% gross margin -- the best in seven years -- was helped by $25 million to $35 million in savings from cheap component prices.
The results illustrate Sun's ongoing predicament. The company has made progress in returning the business to profitability after struggling for years in the wake of the dot-com bust. But beyond cost-cutting and pricing benefits, investors are still waiting to see signs of a marked turnaround in its fundamental business.
In August, Sun announced that it was
Sun said Monday it earned $89 million, or 3 cents a share, during the three months ended Sept. 30, in line with analysts' expectations. At this time last year, Sun posted a loss of $56 million, or 2 cents a share.According to Sun, its quarterly profit included a restructuring charge of $113 million, or 3 cents a share. The company said it experienced strong demand for its high-end server products as well as good growth in subscriptions for its identity-management software during the recently ended quarter. Sun's computer system revenue was up 0.5% year over year, while its storage business revenue increased 2.9%. Revenue from services was up a scant 0.7%.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV