Sun reported results for its first quarter of fiscal 2010, which ended September 27, 2009. The company narrowed its first-quarter loss to $120 million, or 16 cents a share, from $1.68 billion, or $2.24 a share, in the year-ago period. Lower operating expenses helped Sun curb its fiscal first quarter loss, Reuters reported.

Analysts surveyed by FactSet Research and reported by MarketWatch's Wallace Witkowski had estimated a quarterly loss of 25 cents a share on revenue of $2.31 billion. In this reporting quarter, which Sun released November 6th in a Securities and Exchange Commission filing, the company revenue fell to $2.24 billion from $2.99 billion last year. Sun server product sales declined by more than 31% to $862 million, while revenue from storage products fell almost 36% to $325 million. Services revenue also declined by a total of 14% to $1.06 billion.

"Our first quarter of fiscal year 2010 results continued to be affected by the economic downturn, the uncertainty associated with our proposed acquisition by Oracle, increased competition and delays in customer purchasing decisions," Sun said in a statement.

In April, Oracle Corp. agreed to buy Sun for $9.50 a share, or approximately $7 billion. This past August the U.S. Justice Department approved the transaction. The deal still needs approval from the European Commission and other foreign regulators. Oracle CEO Larry Ellison recently said that Sun is losing about $100 million a month because of uncertainty about its future, as European antitrust regulators pursue an in-depth probe of the deal.

The full earnings report for Q1 FY 2010 can be found on the Sun Web site, which also hosts financial slides demonstrating Sun's billings for the quarter by product line.

More Information

Q1 FY 2010 Earnings Release

Q110 Results Financial Slides

Investor Relations Home Page

Sun Reports Final Results for the First Quarter Fiscal Year 2009

Sun's Fiscal 2009 Fourth Quarter Ends on a Loss

European Commission Launches Investigation into Oracle-Sun Deal

US Justice Department Approves Oracle's Acquisition of Sun

Sun-Oracle Deal Scrutinized by European and US Regulators

In-depth Analysis on the Impact of the Oracle-Sun Merger

Sun Stockholders Approve Oracle Acquisition

Sun to be Acquired by Oracle [...read more...]

		fullsource
Print Email Current Profile Archive Blog Generate newsletter