News »Browse Articles » Sun microsystems sinks deeper over the horizon

January 30, 2009:Sun lost $209 million, 28 cents a share, in the December quarter, half way through its fiscal year, because of a $222 million restructuring charge that it’s taking to cover the firing of those 5,000-6,000 people, the 15%-18% of its workforce it vowed to terminate back in November. The latest round of layoffs started this week, reportedly targeting 1,300 folks.

The cuts are supposed to ultimately save Sun $700 million to $800 million a year.

Without the charges, it lost a penny versus expectation of nine cents and on a non-GAPP basis made $114 million, 15 cents a share.

Sales, however, dropped 10.9% to $3.22 billion, slightly better than expected. Sun put it down to “delays” in buying its high-end Sparc systems, down 32%. Sales of its newest eight-core Sparc machines, however, were happily up 31%.

Overall server revenue was down 14% to $1.37 billion; storage revenue slumped 13% to $570 million. Rival IBM, whose hardware sales were down 20% in the quarter, obviously isn’t doing any better.

Source:
http://java.sys-con.com/node/825103

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