Wednesday, November 27, 2002
Sun Microsystems said Tuesday that its revenue for the current quarter, ending Dec. 31, are on target with analysts' estimates of $2.92 billion, an increase of 6.2 percent. But warned that profit margins are pressured by the competitive pricing environment.
Sun also said it still plans to return to profitability in the second half of its 2003 fiscal year, which runs from January to June.
The revenue projection was better than some analysts had been expecting.
When Sun said it would lay off 4,400 employees, it did not give analysts any guidance for its fiscal second quarter. For the first quarter, the company reported revenue of $2.75 billion and a net loss of $111 million, or 4 cents a share.
While the company declined to be more specific about profits or margins in the current quarter, it said it is also expecting a slight increase in operating costs due to investment in research and development and recent acquisitions.
Analysts are expecting Sun to report a loss in the range of 1 cent a share for the second quarter.
Sun has been getting increasingly tough pricing pressure and competition from both IBM and Hewlett-Packard.
By: DocMemory
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