Sun absorbs $147M loss as Oracle deal looms

Aug 29, 2009 By JORDAN ROBERTSON , AP Technology Writer

(AP) -- Sun Microsystems Inc. recorded a $147 million loss while sales eroded 31 percent in the April-June period, likely the server and software maker's last full quarter as an independent company.

Sun's latest numbers, reported Friday in a regulatory filing without the usual news release and conference call with analysts, highlight the uneven financial performance that forced the Santa Clara-based company to put itself up for sale.

In April Oracle Corp. outbid IBM Corp. and agreed to buy Sun in a $7.4 billion deal. It is scheduled to be completed this summer, and still needs approval from European antitrust regulators, which could come any day now.

The deal will give Oracle more control over development of the Java programming language, which Sun invented and is a key ingredient of the Internet. It also moves Redwood Shores-based Oracle, a business , into the hardware market. Sun is one of the world's biggest sellers of computer servers, which power Web sites and corporate back offices.

Sun said after the market closed that it lost $147 million, or 20 cents per share, in the three months ended June 30, which is Sun's fiscal fourth quarter. That compares with a profit of $88 million, or 11 cents per share, in the year-ago period.

Excluding employee stock-based compensation and other expenses, Sun said its loss would have been 3 cents per share.

Sales in the latest period fell to $2.63 billion from $3.78 billion last year.

Revenue from server sales fell 36 percent over last year to $1.1 billion. Revenue from support services fell 15 percent to $886 million.

Analysts polled by Thomson Reuters expected a loss of 19 cents per share and sales of $2.37 billion.

For the full fiscal year, Sun lost $2.23 billion, versus a $403 million profit last year.

Sun's shares fell 2 cents to $9.32 in after-hours trading. The stock is still selling below the $9.50 per share that Oracle has agreed to pay for Sun, a sign that indicates some investors fear the deal might still be scuttled.

The latest results mean that Sun has lost $5.6 billion since 2002. It had only two profitable years - 2007 and 2008 - in that period.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Ex-Apple chief plans mobile phone for India

add to favorites email to friend print save as pdf

Related Stories

As Oracle readies takeover, Sun's loss widens

Apr 28, 2009

(AP) -- Sun Microsystems Inc.'s loss ballooned in the latest quarter as restructuring charges and a 20 percent drop in sales compounded the financial woes Oracle Corp. is set to inherit by acquiring Sun for ...

Oracle tops forecasts despite sales, profit dip

Jun 23, 2009

(AP) -- Software maker Oracle Corp.'s results topped Wall Street's forecast for the latest quarter Tuesday, despite a 5 percent drop in sales and a 7 percent decline in profit.

Oracle says Justice Dept allows $7.4B Sun deal

Aug 20, 2009

(AP) -- Business software maker Oracle Corp. said Thursday it has received the Justice Department's approval to move forward with its $7.4 billion acquisition of former dot-com-era star Sun Microsystems Inc.

Prepping for Oracle, Sun predicts weak results

Jul 14, 2009

(AP) -- Sun Microsystems Inc. projected quarterly results below Wall Street estimates Tuesday, signaling it will clear some charges off its books ahead of its $7.4 billion acquisition by Oracle Corp.

Texas Instruments 2Q profit falls 56 percent

Jul 20, 2009

(AP) -- Chip maker Texas Instruments says its second-quarter earnings fell 56 percent from a year ago, clipped by a weak economy that the company expects will "take some time" to strengthen.

Soft PC sales send Microsoft profit down 29 pct

Jul 23, 2009

(AP) -- Microsoft Corp. said Thursday its profit in the last quarter plunged 29 percent because of weak computer sales, ending a fiscal year in which the software maker's revenue fell for the first time since ...

Recommended for you

Ex-Apple chief plans mobile phone for India

4 hours ago

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

17 hours ago

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

US venture investments highest since 2001 (Update)

Apr 18, 2014

Funding for U.S. startup companies soared 57 percent in the first quarter to a level not seen since 2001, as venture capitalists piled more money into a growing number of deals, according to a report due out Friday.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

jcrow
not rated yet Aug 29, 2009
Sun owns MySql.
This situation could be abused by Oracle.

More news stories

Ex-Apple chief plans mobile phone for India

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

Health care site flagged in Heartbleed review

People with accounts on the enrollment website for President Barack Obama's signature health care law are being told to change their passwords following an administration-wide review of the government's vulnerability to the ...

A homemade solar lamp for developing countries

(Phys.org) —The solar lamp developed by the start-up LEDsafari is a more effective, safer, and less expensive form of illumination than the traditional oil lamp currently used by more than one billion people ...

NASA's space station Robonaut finally getting legs

Robonaut, the first out-of-this-world humanoid, is finally getting its space legs. For three years, Robonaut has had to manage from the waist up. This new pair of legs means the experimental robot—now stuck ...

Filipino tests negative for Middle East virus

A Filipino nurse who tested positive for the Middle East virus has been found free of infection in a subsequent examination after he returned home, Philippine health officials said Saturday.

Egypt archaeologists find ancient writer's tomb

Egypt's minister of antiquities says a team of Spanish archaeologists has discovered two tombs in the southern part of the country, one of them belonging to a writer and containing a trove of artifacts including reed pens ...