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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: cheryl williamson who wrote (41525)	2/22/2001 5:15:36 PM
From: Bocor	Respond to of 64865

moving back up now...19 5/8...think this is a sell the rumor, buy the news.

To: cheryl williamson who wrote (41525)	2/22/2001 5:27:53 PM
From: Brian Sullivan	Read Replies (1) \| Respond to of 64865

McNealy Skips as Sun Stumbles on Sharp Growth Shortfall By Thomas Lepri Senior Writer The Street.com 2/22/01 5:07 PM ET Sun Microsystems' (SUNW:Nasdaq - news) Thursday analyst call managed to match up to its dark billing, as the maker of Unix servers slashed third-quarter earnings and revenue guidance by half. Sun cut third-quarter earnings guidance to 7 to 9 cents a share from the expected 15 cents and said revenue would grow 10% to 13%, well short of the 30% analysts were looking for. The stock has plunged over the last week as investors worried Sun would make just such an announcement on the regularly scheduled quarterly call. Sun declined to provide earnings or revenue guidance for the fourth quarter, citing the now standard lament that the company lacks visibility, or the ability to forecast customers' ordering trends. Sun did mention that third-quarter gross margins would fall 2 to 3 percentage points from second-quarter levels, suggesting competitive pressures may be increasing or that Sun is suffering from an inventory overhang as customers cut back on spending. Notably, CEO Scott McNealy failed to appear on the midquarter conference call, despite his scheduled appearance. Operating chief Ed Zander, picking up for the notoriously confident McNealy, insisted in spite of the sharp reduction in earnings and revenue estimates that the company's workers are "pumped." Sun shares dropped to $19 in after-hours trading on Instinet after closing up 6% at $20.81 during the regular session. The stock has dropped more than 20% in the last week and is down 40% for the year. Noting the weakness in its shares, Sun said on the call that it would seek to buy back some $1.5 billion in shares.