Sun Micro Posts Third Straight Net Loss

By ,

Published January 13, 2015

Network computer maker Sun Microsystems Inc. reported on Friday a fiscal second-quarter loss as it took a large charge for job cuts and restructuring while cautious corporations held back from buying technology.

Sun reported a net loss of $431 million, or 13 cents per share -- its third loss in three quarters -- down from a profit of $423 million, or 12 cents per diluted share in the year-ago quarter.

Before one-time items such as a $511 million restructuring charge, a $39 million charge on investments, and a $218 million tax gain, the loss was $99 million, or 3 cents per share, down from a profit of $494 million or 15 cents per share in the year-ago quarter.

Sales dropped to $3.1 billion in the quarter ended Dec. 31 from $5.1 billion a year ago, which was Sun's highest ever, and followed $2.86 billion in the previous quarter.

Analysts polled by Thomson Financial/First Call had forecast Sun would lose between 2 cents and 5 cents per share, with a consensus estimate of a loss of 4 cents per share on $3.1 billion sales.

On Thursday, Sun shares traded up 26 cents at $12.37 on the Nasdaq.

Shares of Sun, which peaked a year and a half ago at more than $64, have risen about 52 percent since technology stocks hit a low at the beginning of October. International Business Machines Corp shares, which have held up much better in the technology downturn, rose 29 percent since October.

URL

https://www.foxnews.com/story/sun-micro-posts-third-straight-net-loss