Sun has wrung a 94 percent increase in net income from a 1.4 percent increase revenue in its fiscal second quarter. Revenue was almost flat at $3.615 billion compared to $3.566 billion in the year ago quarter. Net income was $260 million compared to $133 million in Q2 07.
The company's gross margin was up 3.5 percent at 48.5 percent compared to 45 percent in the year-ago quarter.
Although product revenues declined by 0.5 percent computer systems sales rose 2.4 percent and storage product sales rose 4.6 percent. Within that disk-based storage sales, revenues rose 7 percent. In the results conference call CEO Jonathan Schwartz said that the new X4500 (Thumper) product line recorded $26 million of sales revenues.
He also announced a Project Blackbox sale to Russia's largest mobile phone operator, MTS, with Blackbox being used to provide datacentre facilities across its service geographies. Blackbox is Sun's datacentre in a shipping container. Schwartz commented in the results conference call that: "We're very happy with the storage business this quarter."
There was, however, no mention of Honeycomb.
The quarter's revenues did not include any contribution from MySQL and also suffered a little from a Sell Out program to remove excess inventory from the channel.
CFO Michael Lehman said Sun was in transition to its new business model. This is a model where there is a vast take-up of open source software supported by Sun which drags along hardware, software and service revenues in its wake. Schwartz said that Sun recorded more than 1,000 new customers this quarter and Lehman said that he expected growth in revenues to accelerate to 5 percent or slightly over that in the second half of Sun's financial year.