Hardware and software giant Sun
SUNW) Thursday announced a second quarter earnings to the
delight of investors and analysts. Sun reported revenues for the
second quarter were up $5.1 billion, a 44% increase compared with
the second quarter of fiscal 2000. Orders for the second quarter
were also up $4.9 billion, representing an increase of 32%.
"I think what you're hearing is deja` vu all over again," says
CEO Scott McNealy. "We've had the same strategy and same people and
same passion as in previous years. We're going to continue to gain
'big time' market share."
McNealy said his biggest concern was keeping the power on during
California's energy crisis.
"Should we experience a rolling blackout during the conference
call, please bear with us at this time," Sun Investor Relations
Executive Mark Paisley said during introductions.
Despite a market trend to lower forecasts, Sun held its
"The market is a strange thing," says Sun VP of Corporate
Resources Michael Lehman. "We did not reset expectations, we put
out a great product and had a great quarter."
Much of the growth came from Sun's hardware line and acquisition
of Cobalt Networks, Inc. for more than $2 billion, and interest in
the new iPlanet service.
Sun's line of hardware includes the new Cobalt servers, the
Netra product family, Solaris servers and the Sun StorEdge T3 array
support for multiple platforms.
Analysts surveyed by First Call/Thomson Financial anticipated
the company would earn 16 cents a share, compared with the 11 cents
it made in the year-earlier period.
Still, investors are closely watching Sun and its competitors
for clues to earnings and performance with the possible threat of
an economic slowdown in 2001.
Shares of Sun gained two points on the day closing at just over
$34 a share.