Sun claims that sales are improving

Sun Microsystems Executives took on a more optimistic tone Thursday with regard to hardware sales in the company's second fiscal quarter and announced new developments in its server and storage lines, during a conference call with press and analysts.

Sun for the last few quarters has been punished by a slowdown in technology spending but said that early sales figures from its second quarter ending Dec. 30 show the company may be making a slight recovery.

"The good news is that, through week nine of this quarter, order rates are tracking to our internal expectations," said Mike Lehman, vice president of corporate resources and CFO at Sun, during the conference call. The rate of orders is up slightly from the previous quarter and Sun expects somewhat higher revenue, he added. "We are encouraged by this, as it has been a few quarters since we have been able to state that," Lehman said.

But Lehman warned that the company does a large amount of business in the later stages of most quarters and said the current state of the economy continues to make predictions difficult.

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