To all:
Reuters, Thursday, October 16, 1997 at 18:18
PALO ALTO, Calif., Oct 16 (Reuters) - Slower-than-expected
sales in September and unfavorable foreign exchange rates
resulted in lower-than-expected revenue in Sun Microsystems
Inc.'s fiscal first quarter, company executives said Thursday.
Earnings per share also fell below analysts' estimates in
the quarter, largely because "We did not make any throttle-back
on our investments in the quarter," Sun Microsystems Chief
Financial Officer Michael Lehman told analysts in a conference
call.
Lehman told analysts the company had expected to record
about half of its business in September after the quieter
summer months, but a final push for sales had fallen short.
He said the company decided not to cut back its planned
levels of investment, thus trimming the bottom line.
Nevertheless, he noted that profits rose 28 percent on a 13
percent increase in revenues over the year-ago period.
Europe, Southeast Asia and Latin America fell the most
short of the company's internal targets, and the dollar may
continue to be an adverse factor, he said. |
