Sun Microsystems has announced that it has applied a $US1.051 billion non-cash charge to the fourth quarter of its fiscal year 2003, which ended June 30.
Sun had previously reported a $US12 million profit for the quarter, but in a regulatory filing with the US Securities and Exchange Commission it revised those results. The company is now reporting a loss for the quarter of $US1.039 billion, or $US0.32 per share.
The non-cash charge was being taken because Sun had reduced its forecast of planned profitability levels for fiscal 2004, Sun spokesperson, Andy Lark, said.
“Our first quarter was particularly difficult due to market and competitive dynamics,” he said. “That caused us to reassess our deferred tax asset value.”
As a result of the reassessment Sun was no longer able to defer certain losses, Lark said.
“This updated analysis required us to recognize a $US1.051 billion non-cash charge,” he said.
This analysis was conducted in accordance with the Statement of Financial Accounting Standards No. 109, Sun said.
It also warned that it expected its loss per share for the current quarter, which ended yesterday, to be somewhere between $US0.07 and $US0.10 per share, when calculated according to generally accepted accounting principles (GAAP). n