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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: faqsnlojiks who wrote (7787)	10/17/2002 7:05:56 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 57110

more bullish news.. (although the flummoxed mcnealy might well be construed as such) cbs.marketwatch.com Sun Micro to lay off 4,400 employees Tech giant posts 2-cent loss for Q1, sets $300 mln charge By Rex Crum, CBS.MarketWatch.com Last Update: 6:50 PM ET Oct. 17, 2002 PALO ALTO, CALIF. (CBS.MW) - Sun Microsystems on Thursday said it will eliminate 11 percent of its workforce, or about 4,400 positions, take a charge of $300 million next quarter, and doesn't expect to be profitable again for another six months. Sun (SUNW: news, chart, profile) made the job-cut notice public at the same time it reported a 2003 first-quarter loss of 2 cents a share that beat Wall Street's estimates. Sun officials said that where certain one-time items were taken into account, the computing giant lost $78 million on revenue of $2.7 billion. Additionally, Sun officials said they could not give any clear outlook about the company's near-term revenue due to continued weak capital spending levels that are plaguing high-tech companies. "Given the uncertain economy, giving a relevant revenue forecast is difficult," said Steve McGowan, Sun's CFO. "We look to be profitable in the second half of fiscal year 2003." When the charges, such as a $31 million loss on equity investments, a $24 million charge in connection with previous restructuring charges, and a $22 million benefit for related tax effects, were taken into consideration, Sun's loss for the quarter ended Sept. 30 came in at 4 cents a share, or $111 million. During the same period last year, Sun reported a net loss of 6 cents a share, or $180 million, on revenue of $2.9 billion. With regard to the layoffs, Sun CEO Scott McNealy, said the company was trying to put itself in a position to manage through the current economic straits "in a reasonable, responsible way." However, McNealy added that trying to evaluate or analyze revenue outlooks for the computer hardware maker was "wasted energy." "I am out of the forecasting game," McNealy said.