Sun Posts $431M Loss In 2Q

Printer-friendly version Email this CRN article

Network computer maker Sun Microsystems Inc. reported on Friday a fiscal second-quarter loss as it took a large charge for job cuts and restructuring while cautious corporations held back from buying technology.

Sun reported a net loss of $431 million, or 13 cents per share -- its third loss in three quarters -- down from a profit of $423 million, or 12 cents per diluted share in the year-ago quarter.

Before one-time items such as a $511 million restructuring charge, a $39 million charge on investments, and a $218 million tax gain, the loss was $99 million, or 3 cents per share, down from a profit of $494 million or 15 cents per share in the year-ago quarter.

Sales dropped to $3.1 billion in the quarter ended Dec. 31 from $5.1 billion a year ago, which was Sun's highest ever, and followed $2.86 billion in the previous quarter.

Analysts polled by Thomson Financial/First Call had forecast Sun would lose between 2 cents and 5 cents per share, with a consensus estimate of a loss of 4 cents per share on $3.1 billion sales.

On Thursday, Sun shares traded up 26 cents at $12.37 on the Nasdaq.

Shares of Sun, which peaked a year and a half ago at more than $64, have risen about 52 percent since technology stocks hit a low at the beginning of October. IBM shares, which have held up much better in the technology downturn, rose 29 percent since October.

Copyright 2000 Reuters Limited. All rights reserved.

Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.

Reuters shall be not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Printer-friendly version Email this CRN article