Morse, the leading midrange reseller, has issued a profit warning following an unexpected sales drop of 15 per cent in April.

The company has sprung into immediate action with a reorganisation of some units intended to save £5m a year.

Morse will take a charge of £1.5m to £2m in the current financial year ending June 30 to cover the re-org. It blames cancelled contracts and deferred orders for the sales fall.

Morse is among other things, Sun Microsystems' biggest reseller in Europe. So if Morse is suffering, and in the relatively buoyant economies of the UK and France, at does this mean for Sun? ®