Sun back in profit

Sun Microsystems has reported a 1.6% drop in revenues for its second financial quarter, which ended on December 26, 2004.

Sun employs 160 people at the company’s strategic software development centre in Dublin.

Revenues for the second quarter were $2.8bn (€2.1bn), a decrease of 1.6% as compared with $2.9bn (€2.2bn) for the second quarter of fiscal 2004. Total gross margin as a percent of revenues was 42.3%, an increase of 0.5% as compared to the second quarter of fiscal 2004.

Net profit for the second quarter of fiscal 2005 was $19m (€14.5m) - one cent per share - compared with a net loss of $125m (€95.3m) or a net loss of four cent per share for the second quarter of fiscal 2004.

This Q2 fiscal 2005 profit includes a charge of $24m (€18.3m) for previously announced workforce and real estate restructuring, a $9m (€6.9m) gain on equity investments, and a $6m (€4.6m) benefit for related tax effects. Excluding these amounts, net income for Q2 fiscal 2005 on a non-GAAP basis was $28m (€21.4m) or USD 0.01 per share as compared with a net loss, on a non-GAAP basis, in Q2 fiscal 2004 of $99m (€75.5m) or a net loss of USD 0.03 per share.

Cash generated from operating activities was $52m (€39.7m) for the quarter, and the cash and marketable debt securities balance increased to $7.5bn (€5.7bn).

During the quarter, Sun Microsystems Ireland announced an agreement with the Localisation Resource Centre (LRC) of the University of Limerick to establish a Sun Localisation Laboratory at UL.

The company's "globalisation centre" in Dublin has been in operation in Ireland since 1993 and has responsibility for the localisation of various product lines for the European, Middle East and South American markets.

The company’s strategic business partner in Ireland is Horizon Open Systems which handles sales of all Sun products here.

"The second quarter delivered many positives, including x64 and x86 server unit volume growth, positive cash flow from operations, and stunning market reviews of Solaris 10 OS. It feels good to ring up a modest GAAP profit," said Scott McNealy, chairman and chief executive officer, Sun Microsystems, Inc.