Sun shares tank on Q3 loss, flat Q4 guidance
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Sun Microsystems reported earnings loss of $34 million or 4 cents a share. The 3rd quarter loss includes the cost of purchasing MySQL AB, a leading data base software company, giving sun a strong foothold in the web-based companies. Schwartz, Sun CEO, added that slower-than-expected sales to government agencies also dragged down the results.
Wall street expected Sun to weather the slowing US economy due to an increasing worlwide market base. With the US approximately 40% of Sun’s business, a slowing economy hurt Sun’s sales numbers in the US.
Q3 revenue was $3.27 billion, down 10% from the quarter a year ago. Revised guidance for the 4th quarter was flat as well and disappointed wall street. The company also revealed plans to cut between 1,500 and 2,500 jobs as it tries to cut down costs. Sun shares were down -3.13 (-19.17%) after the results.
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