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Technology Stocks : All About Sun Microsystems

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To: Carmine Cammarosano who started this subject	1/5/2001 11:17:23 AM
From: DiViT	Read Replies (1) of 64865

There goes the Sun A personal favorite in the saccharine department is Sun Microsystems (SUNW). When it reported first-quarter results on Oct. 18, the company said sales rose 60 percent and earnings per share rose 88 percent to 30 cents a share. Analysts had expected 26 cents a share. No one begrudges Sun a strong quarter, but then the server builder had to gloat. A Sun official went on CNBC and bragged that his company was on such a roll no one could catch up. He then dared analysts to raise all the company's estimates going forward. Oops. Since those halcyon days of "record first quarter" news releases, Sun has hit some bumps. The company's stock price has slipped almost 45 percent since it hit the stratosphere in September. It has been bombarded by rumors of accounting irregularities, a potential rebate program (to move products) and a delay in its next generation of servers. Ever bullish, company officials have denied any problems. Still, Scott McNealy, Sun's chief executive officer, emailed employees with this bit of holiday cheer in late December: "There is no question that the U.S. economy is cooling off. ... It may be a soft landing. It may be a prolonged period of economic indecision and fluctuation. I can tell you no one knows for sure." For some reason, industry players and the folks who watch them held to the idea that the server industry would be insulated from a slowing economy. And Sun still believes this, to a certain degree. It still expects to see revenue growth in the "high 40s" and profit growth in the same range or slightly lower. Sun reports on Jan. 18. Analysts expect the company to post earnings of 16 cents a share, according to consensus estimates compiled by First Call/Thomson Financial. Sun reported earnings of 15 cents last quarter and 11 cents in its second quarter last year. In other words, Sun doesn't expect to blow anything away except its earlier boasting. upside.com

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