Feeds

Sun eclipsed by worst ever quarter

Sun Burn

  • alert
  • submit to reddit

High performance access to file storage

Sun Microsystems reported its worst ever quarterlies yesterday. Q2 2003 revenues were down six per cent to $2.915bn from $3.108bn in the same period the year before (Q2 2002). This resulted in a net loss of $2.283bn for Q2 2003, with margins also down 6.7 percentage points to 43.3 per cent.

Sun wrote off $2.125 billion for the "impairment of goodwill and other intangible assets" and also took a $357 million hit for a previously-announced restructure.

If there's a bright spot in the figures it's that Sun's Q2 2003 revenues increased sequentiall $168 million or six per cent from Q1 2003. But charges have dragged Sun's results further into the red: a Q1 loss of $111mn has mushroomed into a $2.172bn loss this quarter, its worst ever quarterly bottom line.

Sun tried to put a brave face on the figures, which will almost inevitably result in further restructuring (read job cuts).

Steve McGowan, Sun's Chief Financial Officer, said: "Despite the difficult economic environment, we are pleased that, on a sequential basis, we grew revenue, improved our gross margin percentage and reduced operating expenses, and achieved positive cash flow from operations."

Excluding one-off charges, Sun recorded pro-forma revenues of $10 million

Sun Chairman, CEO and President Scott McNealy said the company "put in a solid performance this quarter" and pointed to segments of the market where Sun, in his opinion, shone. "SunServices, Sun StorEdge [storage] and UltraSPARC III processor-based servers, particularly our Sun Fire V880, 4-way, and 8-way UNIXservers, and Sun Fire 12K and Sun Fire 15K servers performed well.

"We taped out next generations of our UltraSPARC family, rolled-out ground-breaking software offerings such as the Solaris 9 Operating Environment for x86 servers and the capacity on demand breakthrough software that allows network computing to be provisioned as needed." ®

Related Stories

Sun repositions first plank in N1 strategy
Misleading anti-Sun ad lands HP reseller in hot water
Sun demolishes Dotcom Builder
Server market stabilises (but competition is fierce)
Sun on track for $2.9bn in Q2

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.