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SANTA CLARA, CA – Sun Microsystems Inc. has reported third-quarter net income of $67 million, compared with a loss in the third quarter last year of $217 million.

The Santa Clara-based company reported weaker-than-expected revenue of about $3.3 billion, up slightly from about $3.2 billion year-over-year. Total gross margin as a percent of revenues was 44.5%, an increase of 1.5%, compared with the third quarter of 2006.

Deutsche Bank Equity Research says Sun may get a lift from its recent advanced product line release, but expects x86 growth to slow further as customers wait for Sun's Intel-based x86 refresh later this summer. VMware-driven consolidation continues to pressure x86 demand, says the firm.

Deutsche Bank suggests more restructuring will be required for Sun to hit long-term margin targets. They believe it will prove difficult for Sun to grow into its existing cost structure because of the highly competitive nature of the server market.

JUAREZ -- Elcoteq will shutter its manufacturing facility here and move production to the company's plants in Monterrey and China by year-end. The EMS company will take a one-time charge of 9 million euros.

All ongoing programs in Juarez will be finished as planned, the company said.

SAN JOSE, CA – Global EMS company Sanmina-SCI Corporation today reported revenue of $2.61 billion for the second quarter ended March 31, down from $2.78 billion in the previous quarter, also down from $2.67 billion in the second quarter of 2006.

Operating income was $40.2 million or 1.5% of revenue, compared to $70.6 million, or 2.5% of revenue in the prior quarter and $66.3 million, or 2.5% of revenue in the same period a year ago. Gross profit was $139.2 million or 5.3% of revenue, compared to $169.9 million, or 6.1% in the prior quarter.

For the second quarter 2007, the company reported a net loss of $26.1 million, versus net income of $28.3 million for the first quarter, and a net loss of $76.1 million year-over year.

Deutsche Bank Equity Research states the company continues to lose share in the EMS industry. The research company also said they are encouraged by Sanmina’s focus on restructuring and decision to divest non-core operations, but believe operational miscues, restructuring charges and market share losses will likely continue indefinitely.

The research firm adds that demand from Sanmina’s communications and high-end computing customers were weak in the quarter (-12% and -11%, respectively), while demand for Sanmina-SCI higher margin PCBs and enclosures also disappointed (both down 20%).