Sun reports break-even quarter

Daily Newsletters

Sign up to ZDNet UK's daily newsletter.

NEWS
Sun Microsystems on Wednesday reported a break-even third quarter, meeting Wall Street's earnings estimates but coming in shy on revenue projections. A number of analysts were expecting the server and workstation maker to post a solid quarter, given the strong quarterly performances by competitors IBM and EMC, which both recently announced year-over-year revenue increases and profit improvements. Sun reported a net income of $4m, or zero cents a share, for the quarter, on revenue of nearly $2.8bn. Last year, Sun reported a third-quarter net loss of $37m, or 1 cent a share, on revenue of $3.1bn. Analysts had expected the company to report a break-even quarter, according to First Call. But Sun, which posted a 10.2 percent year-over-year revenue decline, fell short of some analysts' revenue projections of $2.9bn for the third quarter. Shares of Sun ended the day down 3 cents, closing at $3.32. The company reported earnings after the close of the market. In after-hours trading, Sun shares fell 8 cents to $3.24. The company's sales softened during the middle of the quarter as customers delayed purchases, particularly with its high-end datacentre products, Steve McGowan, Sun's chief financial officer, said during a conference call. As a result, Sun initiated an across-the-board price reduction on its enterprise servers to spur sales. McGowan said sales picked up in the last two weeks of the quarter. Sun, meanwhile, also is facing constrained market share growth. The company's revenue and unit market share remained virtually unchanged last year when compared with the previous year. "I wish we were gaining market share like we were three years ago," Sun CEO Scott McNealy said during the conference call. "But while we don't have market share gains, we are holding our own." In the meantime, Sun is looking to grow its services business like its competitors Hewlett-Packard, IBM and Dell Computer. During the quarter, Sun reported 7 percent year-over-year growth in its services revenue -- representing a 32 percent slice of its total revenue pie. That portion has continued to grow from 20 percent two years ago. The company anticipates some revenue growth in the fourth quarter, but it is too early in the game to offer any percentage estimates, McGowan said.
See the Finance News Section for the latest financial news in the high-tech sector. Let the editors know what you think in the Mailroom.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

  • Login

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

Freebies202

Duplicate comments are not made intentionally. Its very good to know that now you are keeping check on this problem because sometimes a commenter...

6 hours ago by Freebies202 on Microsoft fixes blog comments, speeds up blogs with open source
kevinmchapman

"the very significant number of users" and "many (most) of us" - you have no evidence for these statements. It is a fact that most users are saying...

14 hours ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
Marg Menzies Harrison

Another grammar faux pas is the improper use of "you". When sitting down down in a restaurant, for example, I get cringe when the waitress...

16 hours ago by Marg Menzies Harrison via Facebook on 10 flagrant grammar mistakes that make you look stupid
zdnetukuser

And NOW, folks, for Canonical's next trick... Kubuntu is late. Here's a pencil. Draw your own conclusions. cf.:...

16 hours ago by zdnetukuser on Linux Minterface
Moley

@kevinmchapman. The discussion here reflects the very significant number of users who really do like the traditional menu system and who wish to...

18 hours ago by Moley on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

Er, no... It is an efficient means of finding the application/file/setting you need in one place. The icons are a simply a fallback for when you...

20 hours ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

Isn't the provision of a text based search an admission by the developers that the mass of icons approach does not work? I don't need to use a...

21 hours ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
kevinmchapman

"Unity and GNOME 3 both abandon the old text-based cascading menus in favour of a graphical icon-driven system." Point truly missed. Both use a...

21 hours ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint
TerryRK

whs001 - Thank you, I'm glad you liked the article. I absolutely agree with you on your first point. I should perhaps have made it clearer that...

21 hours ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint
Dennis Nilsson

If we allow corporate interest to dictate the way our government circumvents due process against foreign entities then we should accept the same...

23 hours ago by Dennis Nilsson via Facebook on ACTA stumbles in Germany
GHar123

I totally dislike pirating of works, I fear that artists will be deterred from creating works if they think that they are going to get ripped off....

1 day ago by GHar123 on ACTA stumbles in Germany
JCB33

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

1 day ago by JCB33 on ACTA stumbles in Germany
Moley

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

1 day ago by Moley on A tale of two distros: Ubuntu and Linux Mint
greycynic

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

1 day ago by greycynic on Ten flawed products that derail productivity
GrueMaster

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

1 day ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint
Frederick Wrigley

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

1 day ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint
bdantas

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

1 day ago by bdantas on A tale of two distros: Ubuntu and Linux Mint
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

1 day ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Alan Ralph

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

1 day ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material
Moley

For Gnome 2 die-hards, it is possible to add icons to the bottom panel (or top top panel, if you prefer) which provide the exact Gnome 2...

2 days ago by Moley on A tale of two distros: Ubuntu and Linux Mint