Friday, May 2, 2008
Sun Microsystems posted an unexpected net loss and decline in quarterly revenue, saying the U.S. economy posed "significant challenges," and it announced up to 2,500 job cuts.
Sun shares dived 15 percent after the surprise announcement following the close of regular trading on Nasdaq.
Sun said it would cut 1,500 to 2,500 jobs, or as much as 7.5 percent of its total workforce of 33,500, after U.S. customers delayed orders of high-end business computing and data-storage systems. The drop-off was sharpest among U.S. government, retailing and telecommunications customers, Sun said.
U.S. revenue fell about 10 percent in the third quarter from a year earlier, Chief Financial Officer Michael Lehman told analysts on the call, and said computer systems and data storage equipment each had revenue shortfalls of about $100 million in the quarter.
Sun earns about 60 percent of its revenue from outside the United States, while competitors such as International Business Machines Corp and Hewlett-Packard Co each generate about two-thirds of their revenue abroad.
By: DocMemory
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