For a third consecutive quarter Sun Microsystems surpassed analysts’ expectations and reported a profit 329 million dollars.

After this report, Sun shares went up almost 10 per cent and were valued at 4.89 dollars, a rise of 9 cents per share compared to the same period last year, which represented a dramatic net loss of 301 million dollars, or a loss of 9 cents per share.

The revenue for Santa Clara-based Sun rose to 3.84 billion dollars from 3.83 billion dollars, surpassing once more predictions.

After five consecutive quarters of setbacks, the server manufacturer’s profit skyrocketed for a third straight quarter, increasing revenues for the full fiscal year with 6.2 per cent to 13.87 billion dollars.

“This was a banner quarter in almost every regard. Growth is now the No. 1 priority for Sun,” president and CEO Jonathan I. Schwartz  said.

“With a solid strategy and consistent execution, we delivered on our commitment to achieve at least 4 per cent operating margin in the fourth quarter,” Schwartz added.

“This milestone marks significant progress toward our longer-term growth plan of at least 10 per cent operating margin for the full fiscal year 2009.”

After taking a backbreaking fall, the company decided to make a radical change in its policy and began cutting costs. As part of this radical plan, 3,700 employees were fired in 2006 and operating costs were knocked off to 1.49 billion dollars in the first quarter.

The company’s management is reportedly considering renewed cutbacks in order to get back on its feet after the blow caused by the dot-com collapse, but no further details were revealed.