(http://www.informationweek.com/story/IWK20010830S0026)
From the article: "...Sun posted its first unprofitable quarter in 12 years when it disclosed results for the quarter ended June 30. At the time, company executives said that $3.7 billion in revenue was needed to break even for the current quarter. Lehman said cost-cutting measures, including the reduction of 500 jobs through attrition and reassignments, probably have lowered that figure, but declined to provide more specifics..."
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Wow! I didn't realize that SUNW went 12 years without an unprofitable quarter. I guess I would get worried if SUNW had three or four unprofitable quarters and sales fell significantly year over year.
It appears that SUNW has set their table for the next wave of IT spending. Their new product line bodes well for the future.
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From the article: "...Sun has generated 80 quotes for its new high-end storage systems, and it has several deals in the pipeline, a sign that it may be developing the traction needed to lift the company from its doldrums, says Lehman. "That clearly is driving momentum for us," he said. "More is better." ...
...Duplessie says the product that could have the single biggest impact on Sun's near future is its hotly anticipated high-end server line, code named Serengeti. Duplessie says Serengeti's combination of improved performance, lower pricing, and smaller size could hint at a repeat of the success of Sun's Ultra Enterprise server line that was launched in the mid-1990s. He says it may force IT buyers, currently focused on keeping hardware costs down, to loosen their purse strings. Says Duplessie, "It's cool enough that people will go over the edge."..." |
