Sun Micro`s Asia Brightens Amid U.S. GloomBy Reuters - | Posted 2008-01-28 Email Print
Sun Microsystems Inc, the world's No.4 maker of computer servers, expects revenue across most of Asia to grow more than 15 percent in 2008's fiscal second half as business demand stays resilient despite fears of a potential economic slowdown.
HONG KONG (Reuters) - Sun Microsystems Inc, the world's No.4 maker of computer servers, expects revenue across most of Asia to grow more than 15 percent in 2008's fiscal second half as business demand stays resilient despite fears of a potential economic slowdown.
That forecast — for greater China, India, Korea and ASEAN countries — outpaces Sun Micro's prediction of at least 5 percent for the overall company from January to June, Lionel Lim, Chief Operating Officer of Asia Pacific, told Reuters on Monday.
Sun draws 17 percent of its $3.62 billion global revenue from the Asia-Pacific — which includes Japan, Korea, greater China, India, South Asia, Australia and New Zealand — in the fiscal second quarter ended December 30, and cites emerging markets as its biggest driver of growth.
ASEAN is a grouping of much of Southeast Asia, including Thailand and Singapore.
"Our investment in these four regions is powering the Asia Pacific," Lim said in an interview.
"The robust demand in the region is driven by a build-up of the economy, increasing Internet users, and high oil prices — which lets more companies turn to technology."
Chief Executive Jonathan Schwartz has said the company had not felt the effects of a much-debated U.S. economic slowdown, arguing that corporations turn to technology to enhance productivity during a recession.
So it's forging ahead with plans to add 300 employees in greater China, India, Korea and ASEAN by the end of March, despite mounting worries that a slowing U.S. economy could wallop an export-dependent Asia.
"We will continue to invest. We are bullish about the perspective we have," Lim said, adding that the company now maintains about 3,000 workers in the Asia Pacific.
"We expect to have an aggregate revenue growth rate of over 15 percent in these four areas in our fiscal second half which ends in June."