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Technology Stocks : All About Sun Microsystems

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To: Mark O. Halverson who wrote (64487)	12/14/2007 12:39:33 AM
From: bigpictureinvestor	of 64865

Sun has announced that it is shifting its revenue metric - from one including sales into channels to one only including sales out from channels (to their own customers). At the same time, Sun is intentionally reducing channel inventories. Some of the resulting revenue hit from channel inventory reduction has been seen, but a large portion will be seen this quarter. Channel checks (which are historically very good predictors of Sun's quarterly performance and typically start in the last two weeks of the quarter) may look bad in comparison to previous quarters. But I've seen nothing that could indicate whether Sun's quarter is good or not. Competitors with overlapping quarters seemed to sell a lot of big servers. No question Solaris is gaining traction with software vendors and customers (and apparently hardware vendors?), but it's hard to know how much. The low end SPARC line's very good performance/(power consumption) ratio seems perfectly timed to global warming hype, but seems to only represent a small portion of Sun's revenue. Maybe the quarter will show significant growth there.

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