Sun Shines on Microsoft Deal

Goldman Sachs analyst Laura Conigliaro noted that for every 1,000 people let go, Sun's annual cost savings will amount to around $100 million, or around 2 to 2.5 cents a share.

Although Sun shares were gaining strength, there was still plenty of skepticism on Wall Street about the company's future.

Patrick Adams, manager of the Choice Long-Short fund, said that leading up to today, he'd been toying with the idea of buying Sun Micro on the premise that the company was likely to post a disappointing quarter and that the stock would then sell off. But with Friday's surge, it's hard to see buying the stock right now, he said.

"I don't know how they get out of the box they're in," he said.

Staff reporter Ronna Abramson contributed to this story.

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