The ratings on Santa Clara, Calif.-based Sun Microsystems reflect a good, but not leading, position (based on all operating systems) in the highly competitive global server market, a relatively narrow market base-ûparticularly in comparison to major competitors, and inconsistent profitability. These factors are partly offset by moderate debt levels and good liquidity. Sun achieved revenue growth in fiscal 2006 after four years of declining sales, in large part due to acquisitions made in 2005. Acquisitions have strengthened Sun's position in the enterprise storage and business integration software markets, but did not materially impact Sun's business or financial profile. More importantly, the company has posted several quarters of growth in server systems revenues, which indicates the company's Windows- and Linux-based systems