Sun Micro Faces East

Sun Microsystems(JAVA)is expecting double digit growth in China sales within the next fiscal year.It is providing new products to Asia as the market in the U.S. and U.K. decline,hit by slowing economic growth and the credit crunch.By the fourth quarter,Sun is expecting a 4% increase in profits,and a 10% increase within three years.Kohlberg Kravis Roberts,a private equity firm,has made a large purchase of Sun Micro corporate bonds,which amounts to a big vote of confidence.Sun is the fourth largest producer of server computers.With the aggressive development of virtualization and online telephony,Sun's products will be in growing demand.Sun's earnings rose to .09 cents a share,versus an estimate of .05 cents.Revenue in the software segment was up 6%.Revised profit was 329 million dollars.With the striving for efficiency,its Solaris operating system is especially relevant.The big search and internet companies are likely to demand Sun's products.Sun's expanded margins took the cost of doing business down.With much cash on hand,the company is on the lookout for good acquisitions.The KKR position is not CEO Johnathan Schwartz's focus;his focus is growing Sun,which posted its third consecutive quarterly profit.The firm is based in Santa Clara,California.