Commenting on its third quarter figures – see Company Results Sun Microsystems Inc highlights the fact that it achieved the 18% increase profits on 27% rise in turnover in its fiscal third quarter at a time when the industry has never been more competitive, and that the gross profit margin was the company’s highest in 18 months. Almost 95% of the business came from products 12 months or less old – with 85% from Sparc-based products against just 25% a year ago, and that as a result, manufacturing efficiency has improved dramatically – and it has at last got its new management information systems working properly. As with Compaq Computer, foreign business is fuelling the growth, accounting for more than half – 53% – of the total, with US sales down slightly in the quarter – but US orders were above the second quarter and year-ago levels. Europe alone accounted for 31% of the total and Sun looks to start deliveries from its new plant up in Scotland during the current quarter. The company has shipped more than 50,000 Sparcstation 1s, 8,000 Open Look developer’s kits, and it looks for 300 Open Look applications going up by June. It is also particularly pleased with its results because they were achieved despite a big change in the exchange rate for the Japanese yen late in the term.
