Sun blames revenue drop on weak US economy
- 02 May, 2008 08:37
With its US$1 billion acquisition of MySQL now behind it, Sun reported financial results on Thursday that show the company is still struggling to boost its revenue.
Revenue for Sun's third fiscal quarter, ended March 30, was US$3.27 billion, down 0.5 percent from the same quarter last year. Weighed down by costs associated with the MySQL acquisition, the company reported a loss for the period of US$34 million, or US$0.04 per share, based on generally accepted accounting principles (GAAP).
The company said it was doing well in emerging markets like India and Brazil, but things were not so rosy in the U.S.
"The U.S. economy presented Sun with significant challenges in the third quarter," CEO Jonathan Schwartz said in a statement.
Sun shipped about 80,000 servers during the quarter, a jump of 6 percent from the third quarter a year ago. About 30,000 of those servers were x64 systems, up 26 percent from the previous year.
Sun closed its purchase of open-source database vendor MySQL at the end of February. Sun hopes the deal will help grow its revenue by opening doors at companies that are not yet Sun customers.