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SAN FRANCISCO - Sun Microsystems reported a quarterly profit on Monday compared with a year-earlier loss amid strong sales of its high-end computers.
Net income in the company's fiscal first quarter was US$89 million (S$129.8 million), or 3 cents per share, compared with a net loss of US$56 million, or 2 cents per share, in the year-earlier period.
Revenue advanced to US$3.22 billion from US$3.19 billion.
Net income included US$113 million, or 3 US cents per share, of restructuring charges.
Shares of Sun Micro, up 3.3 per cent this year through Friday, fell 2.3 per cent in extended trading after closing up 2 per cent at US$5.71 on Nasdaq.
Sun Micro, based in Santa Clara, California, said its gross profit margin increased 5 percentage points to 48.5 per cent from the year-earlier period.
Sun, led by Chief Executive Jonathan Schwartz, has been staging a recovery by changing its product line, selling server computers powered by chips from Advanced Micro Devices and Intel, among other moves. It has also cut about 4,000 jobs in the past year.
The company benefited from strength in its high-end systems lineup, Mr Schwartz said in a statement, as well as growth in subscription-based identity management software and greater adoption of its Solaris 10 operating system.
Sun competes in the market for server computers and data-storage gear with bigger rivals International Business Machines Corp and Hewlett-Packard Co . The company had 13 per cent of the worldwide server market in the three months ended June 30, while IBM claimed 31 per cent and HP 28.2 per cent, according to market researcher IDC. -- REUTERS
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