Sun revenue dips with hardware sales still slow

Sun revenue dips with hardware sales still slow

Sun Microsystems has reported a 43 per cent revenue fall for its first fiscal quarter when compared to the same period last year, as the company continues to be punished by slowing demand for its servers in a weak economy and by a lack of orders following the September 11 attacks against the US.

Sun announced revenue of $US2.86 billion for the quarter to September 30, down from $5 billion in last year's first quarter, the company said in a statement.

The company also reported a pro forma net loss of $158 million, excluding unusual items. Including investment losses, in-process research and development costs and tax-related charges, Sun showed a net loss of $180 million for the quarter, according to the statement.

Earlier this month, Sun predicted that it would report revenue of between $2.7 billion and $2.9 billion for the quarter. The company slashed its workforce at the same time, saying it would lay off 9 per cent or about 3900 of its employees.

Sun took a heavy revenue hit as result of the September 11 attacks, company officials said.

"Our business nearly ground to a halt in the two weeks following that tragic date," Sun executive vice president and chief financial officer Michael Lehman earlier this month. Sun traditionally gets a wealth of its orders during the last month of the quarter, he said.

The attacks, which had a large impact on telcos and financial services companies, many of which are Sun customers, seriously dampened the company's sales, he said.

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