Sun posts profit, gets private investment

Sun Microsystems on Tuesday posted a profit that beat Wall Street's financial expectations for its most recent quarter, and announced a $700 million investment from an arm of private equity firm Kohlberg Kravis Roberts.

The software and server maker reported revenue of $3.57 billion, a 7 percent increase from the year-earlier period, and earnings per share of $126 million, or 3 cents per share, using generally accepted accounting principles.

Excluding $58 million of stock-based compensation, $26 million of restructuring and asset-impairment charges and a $4 million tax benefit, Sun had income of 5 cents per share for the quarter, which ended December 31. That's well above the average of 1 cent per share expected by analysts surveyed by Thomson First Call. In addition, Sun's revenue exceeded that expectation of $3.52 billion.

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