Feeds

Sun calms investors with early Q4 dish

Not as bad as you might have thought

Eight steps to building an HP BladeSystem

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." ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.