Sun Microsystems reported a small quarterly net profit of $19 million, after a year-earlier loss of $125 million. Revenue slid 1.6 percent to $2.84 billion from $2.89 billion a year ago and missed Wall Street expectations for revenue of $2.94 billion.

Chairman and Chief Executive Scott McNealy pointed to what he said was the strongest product lineup in Sun's history and its strategy of bundling hardware, storage, software and services into a single offering as taking hold.

Excluding items, Sun said it had a profit of $28 million, or 1 cent per share, reversing a year-ago loss before items of $99 million, or 3 cents.

In the just-completed quarter, Sun cut its total operating expenses to $1.19 billion from $1.29 billion a year ago, and trimmed its cost of sales to $1.64 billion from $1.68 billion.

Its gross margin, or percentage of revenue remaining after subtracting product costs, was 42.3 percent in the quarter, an increase of 0.5 percentage point from a year ago.

By: DocMemory
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