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

To: Charles Tutt who wrote (48235)	4/12/2002 12:56:14 PM
From: Steve Lee	Read Replies (2) \| Respond to of 64865

I understand that pro forma could be a good thing if done with honest intent. But in SUNW's case (as for many public companies) I believe it was done in such a way to make profits look better than they were and deceive the stock buying public for as long as possible. How on earth can a one time charge for restructuring and layoffs be justified? Layoffs and restructuring are a part of doing business. You can't expect to ramp up payroll during good times, make money from them, and get a free ride on the cost of firing them on the inevitable downturn. At least write off this expense over a period of time equal to the average length of employment. If your net worth is lower now than it was when SUNW was much higher, then you have lost money. What you had 5 years ago is irrelevant when discussing whether SUNW's deceit of 18 - 24 mths ago cost you money. To follow your argument losing money is impossible because people are born flat broke so even if they go bankrupt they are no worse off than when they started out right? It is my understanding that McNealy flies fighter jets. What Larry Ellison does is irrelevant to that. I may be wrong on the jet thing but it doesn't detract from the original point that we should neither feel sorry for the "losses" of SUNW execs nor feel they are pretty motivated to get the company back into profit. Modus Operandi for execs of ex hi-fliers is to leave and get VC for a new startup so they can do the same again with fresh OPM.