Growth in network computing markets helped Sun Microsystems Inc. report record results for its fiscal fourth quarter.
In an earnings report yesterday, the company posted record revenue of $3.5 billion for the fourth quarter ended June 30, up 22% from the same period in 1998. Net income for the quarter reached an all-time high of $395 million, a 37% increase from $288 million in the 1998 period, excluding a charge related to an acquisition. Earnings per share totaled 48 cents, 1 cent above the mean analyst estimate.
For the full 1999 fiscal year, the maker of Unix-based computing systems reported revenue of $11.73 billion, up 20% from the previous year. Net income for the fiscal year was $1.16 billion, up 28% from the previous year and the first time that Sun's net income has been above $1 billion.
"Sun's success has come as a direct result of our relentless focus on network computing," says CEO Scott McNealy. "Everything we do is explicitly aimed at providing the products, technologies, and services for companies to harness the power of the Internet and transform their business to an online services-driven model."
Sun says it had record shipments during the quarter, as well as strong growth in newer markets such as E-commerce and communications service providers.
In the first quarter of this year, Sun had the largest share in the worldwide Unix server market, with a 28% share in factory revenue and a 30% share in shipments. Sun's competitors, IBM and Hewlett-Packard, lost a share of the market in both factory revenues and shipments in the first quarter.
Sun's growth rate has been especially fast in the high-end total server market (systems priced on average above $1 million). Sun's product line in this area, led by its Enterprise 10000 Server, also known as Starfire, had a 100% growth in shipments in the first quarter of this year vs. the same period in 1998.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.
Top IT Trends to Watch in Financial ServicesIT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Join us for a roundup of the top stories on InformationWeek.com for the week of September 18, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."