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Technology Stocks : All About Sun Microsystems

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From: Arthur Tang	4/24/2007 7:21:59 AM
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Sunw has now just organized internal structure to support one single large customer, itself or Fortune 100 companies(ebay). Previously, Sunw was only structured with 20,000 channel partners who sell to small and median businesses. Sunw did not use the Digital equipment(HP) model of selling production capacity to all the channel partners to have a 10 year backlog orders. Of course, they can add such soft orders anytime, but the concept drives partners to maintain or grow Sunw's business, by increasing soft orders to alert Sunw management of trends in the market. One analyst projected 4th quarter at $4 billion sales and 7 cents earnings. This will be $16 billion yearly revenue going into 2008. We have projected $15.9 billion for 2009. I expect that Sunw management will have to streamline their business more to gain in profitability, too much fat everywhere, and not yet lean and mean? 10 year backlog orders make planning that much clearer and concise in thinking.

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