05.05.2008
U.S. Economic Turbulence Drive SunMicrosystem In Loss
The recession in U.S. economic growth has certainly proved quite heavy for SunMicrosystem. The company has completed its third quarter and reportedly has closed with a loss.
The turbulence in the U.S. market and the cautious buying behaviour overshadowed the strong growth in emerging markets and other markets. Moreover impacted costs around the MySQL completed over the result. The group now wants to eliminate jobs to 2500.
According to a press release, revenue for the third quarter of fiscal 2008 were USD 3.266 billion, a decrease of 0.5 percent as compared to USD 3.283 billion for the third quarter of fiscal 2007. Total gross margin as a percent of revenues was 44.9, an increase of 0.4 percentage points, as compared with the third quarter of fiscal 2007. Net loss for the third quarter of fiscal 2008 on a GAAP basis was USD 34 million. Net loss for the third quarter-included charges related to the acquisition of MySQL, which reduced earnings per share by approximately USD 0.04.
Jonathan Schwartz, CEO of Sun Microsystems, said, “with double digit year-over-year growth in India and Brazil, and triple digit billings year-over-year growth in our energy efficient, Solaris-based Chip Multi-Threading (CMT) systems, Sun made considerable progress during the quarter. We continue to invest in the future created by open alternatives to proprietary technologies, best exemplified by the acquisition of MySQL”.
