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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: smet~ who wrote (5474)	5/29/2001 4:49:14 PM
From: Susan G	Read Replies (1) \| Respond to of 5732

Sun Microsystems (SUNW) 18.67 -1.80: -- Update -- On call, demand in Europe has "tailed off more than we thought." Some slowdown in Asia but main culprit is Europe. Looks like U.S. has stabilized. Mgmt. says "the news is Europe, the surprise is Europe." SUNW -0.70 vs. 4 p.m. close Sun Microsystems (SUNW) 18.67 -1.80: -- Update -- On call, pricing looks comparable to last quarter. The shortfall relative to expectations is driven by macroeconomic conditions. Mgmt does not expect gross margin improvement sequentially... expects gross margins "in the same range as Q2 and Q3." SUNW -0.70 Sun Microsystems (SUNW) 18.67 -1.80: -- Update -- As a mid-quarter call, mgmt will not address long term growth implications. Expects backlog reduction in the range of $200 mln to $250 mln. SUNW -0.68 vs. 4 p.m. close Sun Microsystems (SUNW) 18.67 -1.80: -- Update -- On call, mgmt. expects pro forma Q4 net income in the range of 2 to 4 cents. SUNW -0.52 vs close. Sun Microsystems (SUNW) 18.67 -1.80: -- Update -- Company warns for Q4; sees $0.02-0.04 versus the current EPS estimate of $0.06; revenues are expected to be $3.8-4.0 bln -- below Mar qtr revenues of $4.095 bln and current estimates of $4.35 bln. Company does not cite factors for the shortfall; conference call begins at 16:30 ET; see press release. Wasn't too long ago we were hearing from Cisco that Europe was fine...uh oh