US$2b Q2 net loss for Sun Microsystems

  • Business
  • Saturday, 18 Jan 2003

LOS ANGELES: Server and software maker Sun Microsystems Inc has reported its largest net loss to date after taking more than US$2bil in acquisition-related charges, but managed to squeeze out a small operating profit thanks to stronger pricing and lower-than-expected component costs. 

Sun, which makes computers that manage networks, failed to reiterate a target set in November of turning in a profit by the end of its fiscal year in June, saying the economy was too murky. 

Chief financial officer Steve McGowan also said he would stop giving mid-quarter updates and declined to comment on clients’ spending plans for the same reason. 

Investors also focused on a bigger question – whether Sun’s developing technology to easily manage networks could fend off incursions by personal computer (PC) technology makers Microsoft Corp and Intel Corp, which are moving into the high-end computing space where Sun is strong. 

For its fiscal second quarter ended Dec 29, 2002, Sun reported a net loss of US$2.28bil versus a year-earlier net loss of US$431mil. Revenue was US$2.92bil compared with US$3.11bil previously. – Reuters  

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