Sun denies accounting irregularities
Rumours and analyst reports hit share price
Sun Microsystems has denied rumours that "accounting irregularities" might force it to revise its stated revenues.
The rumours, combined with analyst reports casting doubt on Sun's future sales, knocked around 13 per cent from the computer manufacturer's share price before a partial recovery, according to the Financial Times.
The paper reports that Michael Lehman, chief financial officer of Sun, issued a statement after the stock market closed, saying that any rumours of accounting regularities or revenue reporting problems "have no basis in fact and are false".
Analysts at Goldman Sachs and Bank of America Securities have issued cautious research bulletins about Sun that said it might struggle to meet sales targets in the face of a global economic slowdown in server sales. The introduction of more competitive products from Hewlett-Packard and Compaq may also eat into Sun's share of the Unix market, they warned. ®