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From the News Desk
Thursday, 31. August 2006
Sun Q4 Swings to Loss on Restructuring Charges, But Beats Revenue Expectation
Sun Microsystems Inc. has posted fourth-quarter net loss due to charges related to job cuts, but its revenue rose 29 percent beating analyst expectations, sending its 4.4 percent higher. Net loss for the for the quarter was much below analysts expectation at USD 301 million, or 9 cents per share, compared with a year-earlier net profit of USD 50 million, or 1 cent per share.
Revenue for the quarter ended June 30 was USD 3.83 billion from USD 2.97 billion, helped by its acquisition of StorageTek.
Analysts, on average, expected a net loss of 4 cents per share, within a range of break-even and a loss of 11 cents per share on revenue of USD 3.61 billion.
"We're making excellent progress returning Sun to growth and profitability. Revenue, bookings and backlog are all up substantially - indicating we're gaining traction, market confidence and share," said Jonathan Schwartz, CEO, Sun Microsystems.
After taking over from McNealy, Schwartz in May announced that the company would eliminate 12 percent of its workforce. However analysts opined that job cuts would not bring down costs enough.
Since the implosion of dot-com and telecommunications investment bubbles in 2000 and 2001, Sun has lost its market as the market moved to cheaper servers using Intel-compatible chips and the Linux operating system. To gain back its market share the company has overhauled its product line and has moved to a wide-lined of servers using chips from Advanced Micro Devices Opteron chips.
Revenue for the quarter ended June 30 was USD 3.83 billion from USD 2.97 billion, helped by its acquisition of StorageTek.
Analysts, on average, expected a net loss of 4 cents per share, within a range of break-even and a loss of 11 cents per share on revenue of USD 3.61 billion.
"We're making excellent progress returning Sun to growth and profitability. Revenue, bookings and backlog are all up substantially - indicating we're gaining traction, market confidence and share," said Jonathan Schwartz, CEO, Sun Microsystems.
After taking over from McNealy, Schwartz in May announced that the company would eliminate 12 percent of its workforce. However analysts opined that job cuts would not bring down costs enough.
Since the implosion of dot-com and telecommunications investment bubbles in 2000 and 2001, Sun has lost its market as the market moved to cheaper servers using Intel-compatible chips and the Linux operating system. To gain back its market share the company has overhauled its product line and has moved to a wide-lined of servers using chips from Advanced Micro Devices Opteron chips.
