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Sun announces stock split amid sales surge

The computing giant, benefiting from booming Unix server sales, announces plans for a 2-for-1 stock split.

Stephen Shankland Former Principal Writer
Stephen Shankland worked at CNET from 1998 to 2024 and wrote about processors, digital photography, AI, quantum computing, computer science, materials science, supercomputers, drones, browsers, 3D printing, USB, and new computing technology in general. He has a soft spot in his heart for standards groups and I/O interfaces. His first big scoop was about radioactive cat poop.
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Stephen Shankland
Sun Microsystems, benefiting from booming Unix server sales, announced plans for a 2-for-1 stock split today.

The split, which must be approved by shareholders at a meeting Nov. 8, will take place Nov. 9.

Over the years, Sun has been successful in competing against Microsoft's Windows for server operating systems. It also has successfully dislodged Hewlett-Packard and IBM to become the top seller of Unix servers, expensive hardware used to build the Internet and corporate networks.

However, Sun faces steeper competition with new servers coming from HP, Compaq Computer, SGI and especially IBM. Sun's own top-end product is expected to arrive in 2001.

Sun's stock today closed at an all-time high of $119.79. The company reported net income of $660 million on revenue of $5 billion in its most recent quarter.

Some see the Linux operating system as a threat to the low end of Sun's product sales because Linux is popular on servers based on Intel chips. But Sun's popularity has meant it has been able to keep large corporate software companies such as Oracle and SAP interested in Sun's version of the Unix operating system, Solaris.