Feeds

Sun calms investors with early Q4 dish

Not as bad as you might have thought

Top 5 reasons to deploy VMware with Tegile

Sun Microsystems has issued an early take on its fourth quarter financial results, showing sales figures that have declined from the same period last year.

The company, which is due to report finalized Q4 figures on Aug. 1, expects revenue to come in between $3.73bn and $3.8bn. During last year's fourth quarter, Sun pulled in $3.84bn. Net income for this year's fourth quarter could come in anywhere between 5 cents and 15 cents in earnings per share, Sun said.

Those figures reflect at $100m restructuring charge, as Sun is in the midst of significant layoffs.

It's a bit surprising to see Sun dish out preliminary fourth quarter results, although it may have viewed the information release as a way of calming investors' nerves. While hardly inspiring, the numbers show that Sun is holding mostly steady even as some prime customers in the financial sector are melting down.

And, in fact, investors have pushed Sun shares higher by almost 10 per cent in after-hours trading, at the time of this report.

"In these difficult economic times, we continue to see customers across the world look to open software and hardware as a source of savings, and feel Sun is well positioned with our most robust line ever of server, storage, software and service offerings,” said Jonathan Schwartz, CEO at Sun.

To Schwartz's point, Sun does in fact have a very solid line of hardware and software going these days, although the company has struggled to attract new sales with the gear. Sun's revenue has declined slowly in recent quarters, while shipments have fallen off at a higher rate.

"Giving the market a taste of their numbers is a good move on their part," Dan Olds, an analyst at Gabriel Consulting, told us. "The stock is close to an all-time low which has to have even the most stalwart investor starting to eye the exits.

"Positive earnings are a good sign, but to me, the most important measure of a technology company is how well or poorly they grow top line revenue - and that's been a weakness for Sun in the past several years." ®

Internet Security Threat Report 2014

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
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.
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.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.