Interim profits surge 39% at Sun Micro-systems

Software group Sun Micro-systems has reported a pre-tax profit of $406.6 million (€373.9 million) in the three months to September 26th, the group's first quarter.

After-tax profits rose by 39 per cent to $274.8 million on the same period last year on the back of a 25 per cent increase in turnover to $3.122 billion.

Research and development charges and income tax provisions arising from Sun's acquisition of Star Division were not included. These would reduce after-tax profits by $3.7 million during the quarter.

The US company said turnover in the first quarter at its Irish-owned strategic partner, distribution specialist Horizon Open Systems, increased by 50 per cent in the three months to September 30th. While no specific figure was given, it is estimated that its first quarter turnover was about £12 million (€15.3 million). This is on the basis that the company's turnover in the 12 months to June 30th was £32 million.

Sun said Horizon's growth was attributable to an increase in large Internet infrastructure projects and greater demand for professional services. It did not reveal a profit figure.

Horizon employs 250 workers, 40 of whom work exclusively on Sun business throughout the State.

Sun employs 225 IT professionals at its European software centre at the East Point Business Park in Dublin, where workers specialise in the development and localisation of software and system testing. This week the company said it wanted to hire 100 more software engineers at this plant.

The company does not disclose profit or turnover figures for its Dublin business. Overall, its European business accounts for 27 per cent of its worldwide sales of hardware, software and services.

Sun's chief executive, Mr Scott McNealy, said the company's growth in the quarter derived from increased market share, especially in Internet servers and service providers.