Feeds

Sun cushions slumping Q3 with layoffs

America (and possibly Reverend Wright) to blame

Beginner's guide to SSL certificates

A rather humbled Sun Microsystems blamed waning US technology spending for its third quarter loss.

Sun's third quarter revenue dipped half a per cent to $3.283bn, as the company struggled to close large deals in the US. The slow quarter pushed Sun back to red ink with the vendor posting a $34m loss, which compares to a $67m profit in the same period last year. Sun now plans to layoff between 1,500 and 2,500 workers to lower costs over the coming year.

Sun's product sales dipped to $2.0bn from $2.1bn, while services revenue increased to $1.26bn from $1.22bn last year.

The company's always upbeat executives were rather put off by conditions in the US.

"There appear to be a number of customers whose spending is uncertain," said Sun CFO Mike Lehman.

Sun, however, was chipper about the sales of its UltraSPARC T1 and T2-based servers, which doubled year-over-year.

In addition, the company remained bullish about its high-end server business with CEO Jonathan Schwartz saying that the big iron Unix is "improving as we speak". And, in fact, documentation around Sun's move to Fujitsu's four-core SPARC VII chip has started to pop up on Sun's website. Sun should shift onto that chip in the second half of this year.

Schwartz also said that Sun has signed up a new Solaris x86 OEM, which will join partners such as Intel, Dell and IBM. But he declined to reveal the name of the vendor. (Wuss - Ed.)

Investors let Sun know how they felt about the quarter during after-hours trading as they shredded JAVA shares by 15 per cent, at the time of this report. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
Turnbull should spare us all airline-magazine-grade cloud hype
Box-hugger is not a dirty word, Minister. Box-huggers make the cloud WORK
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
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.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.