FRAMINGHAM (04/14/2000) - Citing increased market share gains, Sun Microsystems Inc. reported strong third-quarter earnings yesterday, beating Wall Street expectations by 3 cents per share.
For the period ended March 31, Sun reported net income of $436.2 million, a 49 percent jump from the $292 million it netted in the same quarter last year, excluding one-time investment gains and acquisition charges.
Revenue for the quarter surged 35 percent to $4 billion - topping the $4 billion mark for the first time ever - compared with third-quarter 1999 revenue of $2.96 billion.
Wall Street analysts had expected Sun to report earnings of 23 cents per share, according to a consensus of analysts polled by First Call Corp.
Sun's business "accelerated during the so-called Y2K lockdown" in the last quarter of 1999 and continued to take off after that, Scott McNealy, chairman and CEO of Palo Alto, California-based Sun, said in a statement.
Some analysts had predicted that year-2000-related spending freezes might hurt certain types of computer vendors during the latter part of 1999 and early 2000, including hardware and software makers. Sun, however, witnessed record unit volume and revenue for its server division during that time, said McNealy.