Sun Micro posts profit but sales fall short

Sun Microsystems Inc. swung to a first-quarter profit that matched Wall Street’s expectations Monday, marking the server and software maker’s first full year in the black since the dot-com meltdown.

Bolstered by stronger sales of its high-end servers and improved cost controls, the Santa Clara, Calif.-based company’s net income for the three months ending Sept. 30 was $89 million, or 3 cents a share, matching the average estimate of analysts surveyed by Thomson Financial.

During the year-earlier period, Sun lost $56 million, or 2 cents a share.

The company is aggressively cutting costs and jobs in its bid to return to consistent profitability, booking $113 million in restructuring expenses for the quarter, which reduced net income by 3 cents a share.

Sun’s revenue fell slightly short of Wall Street’s estimate, which weighed on the stock in after-hours trading. The company rang up $3.22 billion in sales, up 1% from last year but short of the $3.27 billion analysts expected.

Sun shares gained 11 cents, or 2%, to close at $5.71. After the results were released, the stock fell 15 cents to $5.56.