Sun Microsystems (Nasdaq: SUNW), under CEO Jonathan Schwartz's focused leadership, has managed to turn a profit for the third quarter in a row with its results announced earlier this week. While Sun has been a whipping boy in recent years, I think this shows that Sun is on the right track with their hardware and open source software strategy. There's been a lot of innovation under Scwhartz, in terms of more cost Sun Microsystems (Nasdaq: SUNW), under CEO Jonathan Schwartz‘s focused leadership, has managed to turn a profit for the third quarter in a row with its results announced earlier this week. While Sun has been a whipping boy in recent years, I think this shows that Sun is on the right track with their hardware and open source software strategy. There’s been a lot of innovation under Scwhartz, in terms of more cost-effective high-end hardware, and more participation in open source software. Who would have thought that Sun would embrace Opteron and Intel processors or open source Solaris and Java? These items are showing that Sun is now more open than ever before and I think this strategy is helping their bottom line. While revenues were flat at $3.835 billion compared to the same quarter last year, net income was $329 million and margins are improving. And overall, the company is in much better shape than a year ago. You can listen to the earnings call and view the slides on the web for more details.Sun has improved the efficiency of their operations in part due to cost-cutting which means they may have or may soon reach the limit of what can be done. But if they continue to deliver on their product pipeline, I suspect they will also be able to ratchet up the growth, which is what Wall Street is waiting for. Open Source