Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Tequila Sun-Rise

I think we can stop talking about a turnaround for Sun Microsystems (Nasdaq: SUNW  ) now. Sure, there may still be a way to go before getting back to those $60 share prices of the tech-bubble days, but the company just showed us that this drink has all the right ingredients already.

Diving through the layers, it starts at the top with a steady sales performance. Not stellar by any means, just as nobody would call orange juice terribly exciting, but steady enough. The deep, dark hues at the bottom of the glass -- or the income statement -- used to be grenadine red. But I suspect it's a house recipe, because these numbers are in the black to the tune of $329 million for the quarter and $473 million for the full year. BlackBerry liqueur, anyone?

Best of all, the cocktail is built around top-notch tequila -- gross margins expanded above expectations, and operating margins doubled management's own, supposedly optimistic, 4% quarterly target. The final result is an unhurried, sweet concoction with enough bite to fend off any remarks about "girly drinks."

CEO Jonathan Schwartz has solid, sincere backing from his ground troops, and Sun's open source moves have made it a coder community darling, too. There's a newfound fiscal discipline at work that keeps the company from chasing low-margin revenues with bargain-basement order pricing. Instead, it favors high-quality contracts based on the right products for the right customer, and quality services.

Enjoy your long drink, Jonathan. You've earned it, and I'd be mighty surprised if you didn't shake up a few more refreshing cocktails over the next few years. Traditional rivals like IBM (NYSE: IBM  ) and Hewlett-Packard (NYSE: HPQ  ) have been served notice that there's a new hotshot bartender in town -- and he's an old friend.

Drink up, Fool:

Fool contributor Anders Bylund holds no position in any of the companies discussed here. If you like Tequila Sunrise, you should try a Polar Bear some sweet night among good friends. Heck, mix up a pitcher and go nuts, Arctic style. You can check out Anders' holdings if you like, and Foolish disclosure will dance on your tongue long after the last sip is gone.

Read/Post Comments (0) | Recommend This Article (3)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 532973, ~/Articles/ArticleHandler.aspx, 10/28/2016 1:08:15 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 4:02 PM
HPQ $13.99 Up +0.08 +0.58%
HP CAPS Rating: ***
IBM $153.35 Up +1.54 +1.01%
IBM CAPS Rating: ****