Tuesday, July 31, 2007

Sun reports high earnings

As Jonathan notes, the fiscal earnings for Sun Microsystems were fairly high. In economics technobabble:
As you may have seen, we've announced our fourth quarter and full fiscal year results (our fiscal year ends with the school year, in June). We exceeded the commitments made a year ago, to restore Sun to 4% operating profitability in Q4, and did so by delivering our single best operational quarter since 2001. On an annual basis, we improved Sun's profitability by over a billion dollars. A billion. We grew revenue, expanded gross margins, streamlined our operating expenses - and closed the year with an 8% operating profit in Q4, more than double what some thought to be an aggressive target a year ago.
Basically, Sun made a lot of money. What strategies could've led to this? An increased monopoly and sqashing competitions? Threatening individuals for developing applications? Heck no!
We did this while driving significant product transitions, going after new markets and product areas, and best of all, while aggressively moving the whole company to open source software (leading me to hope we can officially put to rest the question, "how will you make money?").
If I ever lead a company, I know what I'm going to do...

2 comments:

Cairnarvon said...

Obfuscate your business practices by vague handwaving about open source?

cactaur said...

What are YOU talking about? Sun is a highly transparent company and takes the open source community VERY seriously. For one thing, every Sun employee is entitled to their own blog. If Sun had questionable business practices, it would get out onto the internet EXTREMELY quickly. As for defending the open source community: Sun has stood up to Microsoft once (that was because Microsoft tried to implement Windows-specific aspects into their Java compiler, which would cripple the amazing portability of Java. Sun won that suit.) So, if any company (I just generalized with Microsoft because they're typically the worst threat to open source) threatens Sun's open source community, Sun would stand up. I have very little doubt Jonathan would be walked over on.