Sun Microsystems has returned to the black with a modest profit for the second quarter ending 26 December.
Sun posted a net profit of £10.5m on reduced sales of £1.57bn, down 1.6% on the same quarter last year.
For second quarter last year, Sun reported a £69m loss. It has reduced costs by making job cuts, selling off property and slashing its research and development budget.
Scott McNealy, Sun chief executive, said, "It feels good to ring up a modest profit. The second quarter delivered many positives, including x64 and x86 server unit volume growth, positive cash flow from operations, and stunning market reviews of Solaris 10 OS."
McNealy said Sun's $1 per CPU/hour pricing model and the Sun Java Enterprise System were emerging models for recurring revenue.