Sun Micro sales fall, Oracle deal delay stings
Nov 7, 2009 Make Money Online
Computer maker Sun Microsystems Inc (JAVA.O) suffered a 25 percent fall in quarterly revenue, as uncertainty over its delayed sale to Oracle Corp (ORCL.O) hurt its business.
Lower operating expenses helped Sun Microsystems curb its fiscal first quarter loss to $120 million, or 16 cents a share compared with $1.68 billion, or $2.24 a share, a year earlier, according to a filing with the U.S. Securities and Exchange Commission.
But revenue fell to $2.24 billion from $2.99 billion in the same quarter a year earlier, and was lower than the average analyst estimate of $2.34 billion, according to Thomson Reuters I/B/E/S.
The 25 percent drop was also steeper than the sales slump at other technology companies. Oracle’s total revenue last quarter fell 5 percent from a year earlier, while chipmaker Intel Corp’s (INTC.O) revenue fell 7.8 percent.
“Our first quarter of fiscal year 2010 results continued to be affected by the economic downturn, the uncertainty associated with our proposed acquisition by Oracle, increased competition and delays in customer purchasing decisions,” Sun said in a statement on Friday.
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