and high-end Sun servers. These servers were announced on April 17, 2007, as the M-Series, part of the SPARC Enterprise series. In February 2005, Sun announced the Sun Grid, a grid computing deployment on which it offered utility computing services priced at US$1 per CPU/hour for processing and per GB/month for storage. This offering built upon an existing 3,000-CPU server farm used for internal R&D for over 10 years, which Sun marketed as being able to achieve 97% utilization. In August 2005, the first commercial use of this grid was announced for financial risk simulations which were later launched as its first software as a service product. In January 2005, Sun reported a net profit of $19 million for fiscal 2005 second quarter, for the first time in three years. This was followed by net loss of $9 million on GAAP basis for the third quarter 2005, as reported on April 14, 2005. In January 2007, Sun reported a net GAAP profit of $126 million on revenue of $3.337 billion for its fiscal second quarter. Shortly following that news, it was announced that Kohlberg Kravis Roberts (KKR) would invest $700 million in the company. Sun had engineering groups in Bangalore, Beijing, Dublin, Grenoble, Hamburg, Prague, St. Petersburg, Tel Aviv, Tokyo, Canberra and Trondheim. In 2007–2008, Sun posted revenue of $13.8 billion and had $2 billion in cash. First-quarter 2008 losses were $1.68 billion; revenue fell 7% to $12.99 billion. Sun's stock lost 80% of its value November 2007 to November 2008, reducing the company's market value to $3 billion. With falling sales to large corporate clients, Sun announced plans to lay off 5,000 to 6,000 workers, or 15–18% of its work force. It expected to save $700 million to $800 million a year as a result of the moves, while also taking up to $600 million in charges. Sun acquisitions 1987: Trancept Systems, a high-performance graphics hardware company 1987: Sitka Corp, networking systems linking the Macintosh with IBM PCs 1987: Centram Systems West, maker of networking software for PCs, Macs and Sun systems 1988: Folio, Inc., developer of intelligent font scaling technology and the F3 font format 1991: Interactive Systems Corporation's Intel/Unix OS division, from Eastman Kodak Company 1992: Praxsys Technologies, Inc., developers of the Windows emulation technology that eventually became Wabi 1994: Thinking Machines Corporation hardware division 1996: Lighthouse Design, Ltd. 1996: Cray Business Systems Division, from Silicon Graphics