Network computer maker says sales fell for the 10th consecutive quarter on weak server demand.
October 16, 2003: 4:54 PM EDT
SAN FRANCISCO (Reuters) - Network computer maker Sun Microsystems Inc. Thursday reported a wider quarterly loss than a year ago as weak demand for its servers caused sales to fall for the 10th consecutive quarter.
Sun (SUNW: Research, Estimates), based in Santa Clara, Calif., posted a net loss of $286 million, or 9 cents a share, for the fiscal first quarter ended Sept. 28, compared with a year-ago net loss of $111 million, or 4 cents a share. Revenue declined to $2.54 billion from $2.75 billion.
Analysts on average had forecast a loss of 8 cents a share, within a range of a loss of 5 cents to a loss of 10 cents, on revenue of $2.56 billion, according to Reuters Research.
Sun warned on Sept. 29 of a larger-than-expected loss of 7 cents to 10 cents a share, including a tax provision of about $34 million, or 1 cent a share. At the time, that was worse than even the most bearish Wall Street expectations.
Sun has restructured and laid off thousands of employees since the high-tech downturn began. It is now making big bets with its N1 computing architecture, which aims to automate tasks like provisioning storage and computer power.
Shares of Sun fell 16 cents, or 4.3 percent, to close at $3.63 in Nasdaq trading on Thursday. The stock is down from a September 2000 high of more than $64. The shares have risen 17 percent this year, compared with a 51 percent rise in the American Stock Exchange Computer Hardware Index.
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