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Sun posted loss due to charges


Tuesday, April 25, 2006 Sun Microsystems Inc. posted a quarterly net loss due to merger- and other related charges as revenue climbed, boosted by the computer maker's acquisition of Storage Technology Corp.

Sun said it had a net loss of $217 million, or 6 cents per share, for its fiscal third quarter ended March 26, compared with a year-ago net loss of $28 million, or 1 cent per share. Revenue rose 21 percent to $3.18 billion.

Analysts were expecting a net loss of 7 cents per share, on average, within a range of a net loss of 4 cents per share to 9 cents per share, according to Reuters Estimates. Revenue was pegged at $3.2 billion, within a range of $3.05 billion to $3.33 billion.

The charges amounted to 5 cents per share, and excluding them, Sun had a loss of 1 cents per share. That compares with a 3-cent-per share loss expected by analysts, excluding items.

Sun has introduced a line of servers called Galaxy that use Advanced Micro Devices Inc.'s Opteron processors, but sales have yet to boost Sun's revenue materially.

Sun said that its traditional business, the sale of its servers running the Solaris version of the Unix operating system and Sun's own microprocessors, grew in the United States from a year ago, and in most of Asia, parts of Europe and nearly all parts of the Americas outside the United States.

"We delivered the results we were anticipating," said Michael Lehman, the Sun chief financial officer.

By: DocMemory
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