Euro helps Sun into profit
Euro helps Sun into profit
Sun Microsystems reported a quarterly profit, helped it said by the strong Euro, the single currency for Europe, making their systems more affordable in that market.
The profits in the last quarter put an end to declining revenues, which have haunted the storage and computing giant for last eight consecutive quarters, Reuters reports. Sun said that demand for corporate data centre systems declined in the middle of the last quarter. Executives said they were trying to work out why there had been a dip in demand at the middle of the quarter.
Despite the decline Sun posted a net profit of US$4 million. Analysts told Reuters that this was inline with their expectations.
In a conference call, executives from Sun Microsystems said that the Euro made their products less expensive in the highly important market, which helped their sales.
Following the announcement, shares in Sun fell to $3.24. Scott McNealy, recently in Australia, joked at the announcement, "We want credit for not blaming SARS or the war on Iraq," the Chief Executive said. Many other vendors have blamed the US invasion of Iraq for holding down profits.
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