Updated from 4:34 p.m. EDTJonathan Schwartz rang in his first quarter as CEO of Sun Microsystems ( SUNW) by soundly exceeding Wall Street's top-line projections Tuesday. But the company's cautious guidance for the current quarter mitigated the initial lift that the company's shares received from the financial report. The Santa Clara, Calif., computer company lost $301 million, or 9 cents a share, for the three months ending June 30. But those results included various charges such as $228 million in restructuring charges and $83 million for intangible asset amortization from recent acquisitions. Excluding those charges, Sun said it had a loss of 2 cents a share compared with the average analyst expectation of a loss of 3 cents a share. At this time last year, Sun had a profit of $50 million, or 1 cent. Sun's shares rose about 4% in extended trading initally after the report, but then moderated to a gain of 1.2%, or 5 cents, at $4.14. Strong sales of computer server and storage hardware boosted Sun's revenue 29% from the year-ago period to $3.8 billion. Analysts polled by Thomson Financial were expecting $3.6 billion in sales. Sales of the volume servers featuring between one and eight microprocessors, which comprise the bulk of Sun's server business, grew 21% year over year, while the company notched more than $100 million in sales of its recently introduced servers featuring the Niagara chip. "We're making progress returning Sun to growth and profitability," said Schwartz in a statement. "Revenue, bookings and backlog are all up substantially -- indicating we're gaining traction, market confidence and share." Schwartz replaced Sun co-founder Scott McNealy as CEO in April. Since then, Sun has announced sweeping organizational changes, including layoffs of between 4,000 to 5,000 employees and the sale of its Newark, Calif., office campus.