Feeds

Sun cushions slumping Q3 with layoffs

America (and possibly Reverend Wright) to blame

Build a business case: developing custom apps

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. ®

Build a business case: developing custom apps

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.