Network computer maker Sun Microsystems Inc. reported on Friday a fiscal second-quarter loss as it took a large charge for job cuts and restructuring, but said it sees some signs of progress compared to the previous quarter.
Sun reported a net loss of $431 million, or 13 cents per share -- its third loss in three quarters -- down from a profit of $423 million, or 12 cents per diluted share in the year-ago quarter.
Before one-time items such as a $511 million restructuring charge, a $39 million charge on investments, and a $218 million tax gain, the loss was $99 million, or 3 cents per share, down from a profit of $494 million or 15 cents per share in the year-ago quarter.
Sales dropped to $3.1 billion in the quarter ended Dec. 31 from $5.1 billion a year ago, which was Sun's highest ever, and followed $2.86 billion in the previous quarter.
George Elling, an analyst at Deutsche Banc Alex. Brown said that attention will be on the company's outlook for 2002.
"On the surface, the revenues certainly are acceptable and the loss was in line with expectations, a little bit better. The revenue side of the equation was on target and bookings seem to be OK."
Analysts polled by Thomson Financial/First Call had forecast Sun would lose between 2 cents and 5 cents per share, with a consensus estimate of a loss of 4 cents per share on $3.1 billion sales.
News source: Reuters - Sun Micro Posts a $431 Million Net Loss
Sun reported a net loss of $431 million, or 13 cents per share -- its third loss in three quarters -- down from a profit of $423 million, or 12 cents per diluted share in the year-ago quarter.
Before one-time items such as a $511 million restructuring charge, a $39 million charge on investments, and a $218 million tax gain, the loss was $99 million, or 3 cents per share, down from a profit of $494 million or 15 cents per share in the year-ago quarter.
Sales dropped to $3.1 billion in the quarter ended Dec. 31 from $5.1 billion a year ago, which was Sun's highest ever, and followed $2.86 billion in the previous quarter.
George Elling, an analyst at Deutsche Banc Alex. Brown said that attention will be on the company's outlook for 2002.
"On the surface, the revenues certainly are acceptable and the loss was in line with expectations, a little bit better. The revenue side of the equation was on target and bookings seem to be OK."
Analysts polled by Thomson Financial/First Call had forecast Sun would lose between 2 cents and 5 cents per share, with a consensus estimate of a loss of 4 cents per share on $3.1 billion sales.
News source: Reuters - Sun Micro Posts a $431 Million Net Loss
Sun's chief financial officer, Michael Lehman, said the company was seeing progress despite the tough economic times.
"Compared with Sun's first fiscal quarter, bookings and revenue in the second fiscal quarter are up sequentially and inventory reductions are in excess of $200 million," CFO Lehman said in a statement. "We generated cash in the quarter on an operating basis, even with the payments we've made on our restructuring, and Sun's cash and liquid marketable investment position remains strong, at approximately $6 billion."
On Thursday, Sun shares traded up 26 cents at $12.37 on the Nasdaq. Before the bell, the shares were indicated to open lower by about 50 cents.
Shares of Sun, which peaked a year-and-a-half ago at more than $64, have risen about 52 percent since technology stocks hit a low at the beginning of October. International Business Machines Corp shares, which have held up much better in the technology downturn, rose 29 percent since October.
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