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

To: Bald Eagle who wrote (48623)	4/26/2002 5:48:52 PM
From: cfimx	Read Replies (1) \| Respond to of 64865

i would have said you got a nice haircut today but....<G>

To: Bald Eagle who wrote (48623)	4/27/2002 7:21:24 AM
From: JDN	Respond to of 64865

Dear Baldie: I know that, my post was addressed TO ALL you just happened to be the last poster before I posted. Anyhow, FRI SUCKED AGAIN. I'm going Jeeping. JDN

To: Bald Eagle who wrote (48623)	4/28/2002 10:01:50 PM
From: techtonicbull	Read Replies (1) \| Respond to of 64865

Sun Micro shares step up after report By Chris Kraeuter, CBS.MarketWatch.com Last Update: 4:07 PM ET April 19, 2002 SANTA CLARA, Calif. (CBS.MW) - Sun Microsystems jumped 7.4 percent Friday after the tech giant said it should post a profit during the current quarter even though information technology spending remains weak. For the recently completed fiscal third quarter, the server, storage and software company turned in a loss as sales dropped 24 percent to $3.1 billion. Revenue was flat with the previous quarter. Shares (SUNW: news, chart) rose 63 cents to $9.15 as the most actively traded stock in the United States with 172 million. Analyst Laura Conigliaro with Goldman Sachs termed Sun's flat sequential revenue "a mild accomplishment" considering the weak demand environment. She adjusted her future revenue targets, as well as her earnings estimates. "Although Sun's near-term stock performance remains hostage to weak IT spending, longer term we continue to view Sun favorably," she wrote in a morning research note. George Elling at Deutsche Bank Securities reiterated a "strong buy" rating on Sun's stock based on a recovery. "Although the near-term market environment remains quite difficult, we believe that management is executing nicely and continues to position the company well for an economic recovery." Third quarter For the quarter ended in March, Sun reported a net loss of $37 million, or 1 cent a share, on revenue of $3.1 billion. During the same quarter last year, net income was $136 million, or 4 cents a share, on revenue of $4.1 billion. Excluding one-time items, Sun's loss was $26 million, or 1 cent a share, which beat the 2-cents-a-share average loss estimate of analysts surveyed by Thomson Financial/First Call. Analysts also expected revenue of $3.18 billion, on average. During the previous quarter, net loss was $431 million, or 13 cents a share, on revenue of $3.1 billion. Customers placed orders for product worth $3.088 billion, which resulted in a book-to-bill ratio of 1.1. Sun ended the quarter with a backlog of $775 million. Lead times for orders on all major product lines decreased during the latest three months. Cost of sales decreased to $1.8 billion from $1.97 billion in the previous quarter and $2.4 billion during the same quarter last year. Gross margin was 42 percent vs. 36.6 percent in the previous quarter and 41.3 percent during the same quarter last year. "Gross margin improvements were the biggest driver of overall results," said CFO Michael Lehman, citing lower inventory levels and lower costs from product transitions. Margins on products improved by 6 percentage points and service margins improved 3.8 percentage points. Selling, general and administrative expenses increased to $991 million from $966 million sequentially and $948 million during the same quarter last year. Lehman said the company is still finalizing previously announced headcount reductions and that 1,000 more employees will leave Sun within nine months. Fourth quarter For the company's final quarter of its fiscal year, Sun said it will post a profit on "slightly higher" sequential revenue. Gross margins will be up modestly and operating expenses will grow "slightly." Analysts had expected earnings of 1 cent a share on revenue of $3.56 billion, on average. The fourth quarter is typically a stronger quarter for Sun. However, executives said seasonal patterns are not much use anymore since the Internet industry imploded and the tech industry was thrust into turmoil. COO Ed Zander said he was approaching the quarter with a cautious view, but that he has seen more business in the pipeline and increased activity of late. Sun executives will host a midquarter update on May 23.