Feeds

Sun's sales slip, forecasts summer recovery

Big restructuring charges

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Sun Microsystems has posted a second quarter net loss of $431 million as its sales fell by more than a third.

Losses for the quarter came in at $431 million compared with net income of $423 million in the same quarter last year. Excluding losses on Sun's equity investment portfolio, charges related to job losses and other charges, the firm lost $99 million.

Revenues were down 39 per cent to $3.11 billion from $5.12 billion recorded in Q2 2000 but up 9 percent on the $2.83 billion recorded in Q1. The firm blamed restructuring charges of $511 million and a slow down in technology spending for the losses.

Michael Lehman, Sun's chief financial officer, said: "compared with Sun's first fiscal quarter, bookings and revenue in the second fiscal quarter are up sequentially and inventory reductions are in excess of $200 million. We generated cash in the quarter on an operating basis, even with the payments we've made on our restructuring, and Sun's cash and liquid marketable investment position remains strong at approximately $6 billion."

"Despite economic uncertainties, Sun still is investing in product development and core competencies to promote the long-term growth of the company," he added.

The firm brushed aside concerns that heightened competition suppliers of lower-priced Wintel servers and Unix rivals would delay its recovery.

Sun CEO Scott McNealy said the start of volume shipments of its Sun FireTM 15000 server, flagship high-end system, and low-end Sun FireTM V880 server, during the quarter helped position the firm well for recovery

In a conference call, Sun executives said they expected the firm to return to profitability by the middle of this year. ®

Related stories

The Sun shines out of BEA's hind
Intel sabotaged Solaris on Itanic - Sun

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.