Sun Microsystems, whose European software centre is based in Dublin, has reported a 17 per cent increase in net income to $232 million (£166 million) on turnover growth of 12 per cent for the third quarter to 29th March, 1998.

The results are marginally above estimates and the company says the one of the reasons behind the increase is demand for its new low-end workstations, Ultra 5 and Ultra 10.

The increased sales of the new workstations should mean more work for the software centre which handles all European sales It accounts for approximately 25 per cent of Sun's worldwide sales.

Turnover has increased worldwide from $2.11 billion to $2.36 billion, while the increase in net income from $197 million does not include a once-off gain from the sale of various equities.

Third quarter earnings per share were $0.59, compared with the previous years earnings per share of $0.51.

Including this one time net gain, net income and earnings per share for the third quarter of fiscal 1997 were reported as $224 million and $.58, respectively. "We are pleased with the overall results of the third quarter," said chief executive officer Mr Scott McNealy.

"During the quarter we had some noteworthy highlights. Demand for our new low end Ultra 5 and Ultra 10 workstations, announced in January, exceeded our expectations during the quarter," he said.