Sun Microsystems reports narrowing losses
Server market giant Sun Microsystems is finally getting itself on the track. The company reported narrowing first quarter losses as the sales improved by 3.7 percent. This can be attributed to revamped products like those that Sun offered this quarter in the server and software market. However, they still made a loss of $123 million, or 4 cents per share.
This is a small improvement over the loss of $133 million, or 4 cents a share they made in the first quarter of the fiscal 2005. They also have an additional expense of $50 million related to stock options. The revenue for the company grew to $2.73 billion from $2.63 billion in the first quarter of 2005. It is expected to get better now that the newer figures would include the results from Sun’s recent acquisitions of SeeBeyond Technology Corp. and Storage Technology Corp.
Sun Microsystems is still trying to recover from the collapse of the tech boom that occurred around 2000. since then, the market has somewhat preferred to have low cost solutions which Sun has failed to provide in the initial years leading to the market preferring other companies like IBM and Hewlett-Packard.
Sun has recently started offering low cost solutions based on the Advanced Micro Devices Inc.’s Opteron chip that can run software from companies other than Sun. Scott McNealy, Sun’s chairman and chief executive officer said in a statement: “We are confident in our product strategy, and as momentum behind our execution builds, we are beginning to fire on all cylinders.â€