Steven Posted December 24, 2002 Share Posted December 24, 2002 Sun up after Microsoft ruling By Reuters December 24, 2002, 12:00 PM PT Shares of Sun Microsystems rose Tuesday, a day after a federal court ordered Microsoft to distribute Sun's Java programming language with its Windows operating system. Sun gained nearly 6 percent in Nasdaq trading. Sun and Microsoft, the world's largest software company, have been arguing over Java's inclusion in Microsoft's operating system for years, with Sun charging that Microsoft tried to sabotage Java by dropping it from Windows XP, which was introduced last year. Monday's decision revives a tough sanction against Microsoft that was rejected by another federal judge in the separate landmark government antitrust case against the company. Microsoft said it will appeal the Monday ruling. One analyst noted that the decision's implementation may be delayed if Microsoft is able to obtain a stay order and overturn the ruling. "In our opinion, the incremental near-term benefits of this ruling will be felt in Sun's developer tools business (only 1 percent to 1.5 percent of revenue), but we believe it is too early to justify any material impact to revenue or earnings,'' Salomon Smith Barney analyst Richard Gardner wrote in a research note. Gardner has an "underperform" rating on Sun, and Salomon has done underwriting for Sun in the past year. The ruling is yet another step in a long legal process for Microsoft, an analyst from Soundview Technology said. "We expect legal issues to become a part of the permanent Microsoft backdrop as the legal uncertainties and repercussions of the federal antitrust case extend for years to come,'' Victor Raisys wrote in a research note. Raisys said the news was a mild negative for Microsoft. Microsoft shares traded lower initially on Tuesday before recovering to gain slightly. Raisys has a "neutral" rating on the stock. Sun shares rose 17 cents, or 5.74 percent, to $3.13, and Microsoft fell 18 cents to $53.82. Story Copyright ? 2002 Reuters Limited. All rights reserved. http://news.com.com/2100-1001-978801.html?tag=fd_top Link to comment Share on other sites More sharing options...
Recommended Posts