On a roll after its détente with Intel, Sun Tuesday came in with respectable numbers for a change and announced that - for some illusive reason - Guernsey-based KKR Private Equity Investors LP had put $700 million in the company in the form of convertible notes.

Sun, which has close to $3.5 billion at hand, said it would use the money for growth. Sun CEO Jonathan Schwartz described the investment as "an opportunistic transaction."

Meanwhile, Sun, which has lost $5 billion in the last four years, reported fiscal Q2 earnings of $136 million, or three cents a share - (cue Handel's Hallelujah Chorus) - when a year ago it lost $223 million, or seven cents a share, a rut it was in for years.

Sun earned the money on revenues up 7% to $3.57 billion, slightly better than the $3.52 billion that Wall Street expected. It credited sales of its Niagara Sparc servers. Its AMD servers were up 46% year-over-year. Storage sucked; revenues were down 6%.

Sun expects revenues this quarter to drop 3%-5% sequentially, or between $3.39 billion and $3.46 billion, because of seasonality and said it would finish the year in June with a 4% operating margin.

It remains to be seen whether it can repeat the exercise and be profitable this quarter, which Sun expects to be "challenging." It is still cutting people and terminated 1,600 jobs in Q2.