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Sun Steadies its Sights on 10% Operating Profit Margin for 2009 Sun CFO Michael Lehman Confirms Goal During Sun Analyst Summit
Sun is on target to reach its stated goal of a 10 percent operating profit margin during 2009, as well as this year's financial targets, said Sun CFO Mike Lehman this past week during the Sun Analyst Summit 2008 in San Francisco. He referred to strong sales growth in emerging markets and a shift toward more expensive server and storage setups as positive indicators toward reaching these marks. Sun now boasts five straight quarters of profits. Its profits have more than quadrupled over last year, rising to $349 million during the first half of its current fiscal year. "We have done exactly what we said we were going to do," Lehman said, reported AP's Jordan Robertson. With the MySQL acquisition underway, Sun does expect low- to mid-single-digit sales growth in the current fiscal year and outlined some of the charges it expects to incur with the buyout. "Sun expects to take a charge of $20 million to $50 million for in-process research and development when the MySQL deal closes, which is expected to be in the current quarter, which is Sun's fiscal third quarter," Robertson reported. "In the fourth quarter, Sun expects a hit of $30 million to $50 million from stock-based compensation and other acquisition expenses." The acquisition is a key part of Sun's turnaround strategy, which hinges on distributing free open-source software to generate more revenues from support services and drive higher server sales.
Visit the System News for Sun Users blog for more on the Sun Analyst Summit 2008.
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We have done exactly what we said we were going to do. 
Sun Steadies its Sights on 10% Operating Profit Margin for 2009
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