| Sun Microsystems loss narrows |
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07/11/2009 11:37 (13 Day 17:26 minutes ago) | |||||
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The FINANCIAL -- Computer maker Sun Microsystems Inc reported a narrower loss in its first quarter.
The company’s fiscal first-quarter loss narrowed to $120 million, or 16 cents a share, from $1.68 billion, or $2.24 a share, in the year-ago period, Market Watch reported. Revenue fell to $2.24 billion from $2.99 billion last year.
Analysts surveyed by FactSet Research estimated a quarterly loss of 25 cents a share on revenue of $2.31 billion, the same source wrote.
According to The Wall Street Journal, the latest results included pretax charges of $45 million for restructuring and $6 million for impairments, a sharp improvement from $63 million and $1.45 billion, respectively, a year earlier. Excluding items, earnings were 2 cents a share.
"Our first quarter of fiscal year 2010 results continued to be affected by the economic downturn, the uncertainty associated with our proposed acquisition by Oracle, increased competition and delays in customer purchasing decisions," Sun said in a statement on Friday, Reuters reported. Oracle Chief Executive Larry Ellison recently said that Sun is losing about $100 million a month because of uncertainty about its future, as European antitrust regulators pursue an in-depth probe of the deal.
Sun sold itself to Oracle after several years of failed attempts to devise a strategy to turn itself around. A sale to Oracle was seen as a way to transform Sun into a diversified technology company selling computers alongside Oracle's software, according to the same source. But European Union regulators said last month that Oracle has not presented evidence to placate anti-competition concerns. The European Commission faces a January 19 deadline on whether to approve the deal.
Sun Microsystems, known for its UltraSPARC processor-based servers, Solaris operating system and and Java technology, was founded in 1982 by Stanford University graduate students Vinod Khosla, Andy Bechtolsheim and Scott McNealy, RTT News informs. The name Sun was derived from the initials of Stanford University Network.
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