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Sun Returns to Profitability

SANTA CLARA, Calif. -- Sun Microsystems, Inc. (Nasdaq: SUNW - News) reported results today for its fiscal second quarter, which ended December 31, 2006.

Revenues for the second quarter of fiscal 2007 were $3.566 billion, an increase of 7 percent as compared with $3.337 billion for the second quarter of fiscal 2006. The year-over-year revenue increase was due to sales of SPARC chip multithreading (CMT) servers and x64-based servers as well as the increased acceptance of the Solaris(TM) 10 Operating System. Computer Systems products revenues increased 14 percent year-over-year, the fourth consecutive quarter of year-over-year revenue growth.

Net income for the second quarter of fiscal 2007 on a GAAP basis was $126 million or $0.03 per share on a diluted basis, as compared with a net loss of $223 million, or ($0.07) per share, for the second quarter of fiscal 2006.

Sun Microsystems Inc.