Sun Microsystems Seeks to Regain Dominance in Workstation Market

Sun Microsystems, the leading maker of computer workstations, has been written off by many in the tech industry as a company on the decline. However, despite being overshadowed by Apple's new Macintosh line and Intel's quicker Pentium chip, Sun has been quietly working on new products to revitalize its position in the workstation market. The company's introduction of the $10,000 Voyager, its first "transportable" workstation, marks a significant step towards this goal. As analysts and investors take notice, Sun's stock has begun to rise, closing at $29.875 yesterday, up 50 cents from the previous day.

Key Takeaways:

• Sun Microsystems has introduced the $10,000 Voyager, a new "transportable" workstation designed to refresh the performance of Sun's desktop systems and put the company back "in the hunt" in the performance-sensitive workstation market.
• Sun's new product family, scheduled to be introduced later this month, has generated buzz on Wall Street, prompting buying and sending the company's stock up 8 percent in the last five trading days.
• Despite being late to transition to a new Sparc microprocessor, Sun has maintained its 30 percent share of the workstation market and has managed to protect its margins by developing systems that speak directly to the needs of its core customers.
• Sun's efficient business practices, including inventory management and distribution channel restructuring, have been praised by analysts, and the company's stock has been valued as low as $20 since the beginning of January.
• Analysts, including Laura Conigliaro of Prudential Securities and Doug van Dorsten of Hambrecht & Quist, have expressed optimism about Sun's prospects, citing the company's solid business story and potential for growth.
• Sun's current stock price of $29.875 is still below its 1987 high of $45.75, but represents a 50-cent gain from the previous trading day.

Statistics:

• Sun's stock has risen 8 percent in the last five trading days.
• The company's stock closed yesterday at $29.875, up 50 cents from the previous day.
• Sun's stock has closed at $29.125 at the end of last year.
• The company's current share price is still below its 1987 high of $45.75.

Sources:

• *Original article, no date specified*
• J. Hoffman, "Sun Microsystems Seeks to Regain Dominance in Workstation Market" (Original article, no date specified)