Losses continue at Sun
- 03 November, 2005 07:15
Despite some bright spots with its Opteron-based server line and midrange storage arrays, Sun Microsystemshas reported lacklustre results for its first fiscal quarter of 2006. Revenue hit $US2.7 billion, an increase of just under 4 per cent, year-over-year, and the company posted a net loss for the quarter.
Sun's loss came to $US123 million, or $US0.04 per share for the quarter, when calculated according to generally accepted accounting practices (GAAP). One year ago, the company's quarterly loss totalled $US133 million or $US0.04 per share.
Excluding $US50 million in stock-based compensation charges and $US60 million in acquisition charges, the company lost $US18 million, or $US0.01 per share for the quarter, which ended Sept. 25.
Revenue for the quarter was up from last year's $US2.6 billion, thanks in large part to the company's acquisition of Storage Technology and SeeBeyond Technology. These acquisitions, which were completed in August, added $US226 million to Sun's total revenue.
Sales of Sun Fire servers based on Advanced Micro Devices's Opteron processor more than doubled during the quarter, and sales of midrange storage arrays were up 15 per cent, year-over-year, Sun said in a statement.
The once high-flying Sun was hit hard by the downturn in the technology market and has struggled to maintain profitability for several years now.