Bad News, Good News at Sun
Updated from 8:11 a.m. EST
Sun Microsystems(SUNW Quote) said second-quarter earnings and revenue will fall well short of expectations, and the struggling computer-server outfit outlined a restructuring in which it will cut 3,300 employees and take charges totaling $475 million.
Sun's stock tanked on the profit miss, but recovered when the company subsequently announced an agreement under which Microsoft(MSFT Quote) will pay it more than $1.9 billion to settle antitrust and patent litigation and for royalties.
Sun expects to lose $750 million to $810 million, or 23 cents to 25 cents a share, in the quarter ended March 28, including a $200 million restructuring charge and a $350 million charge to increase the valuation allowance for deferred tax assets. Excluding the charges, Sun expects to lose between $200 million and $260 million, or 6 cents to 8 cents a share, on revenue of about $2.65 billion. ...
Recent Comments
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,344.84 | 1,095.63 | 2,144.60 | 32.01 |
Oil *
78.55
|
|
UP
34.92
|
UP
4.14
|
UP
6.16
|
DOWN
0.30
|
10 Yr
3.20%
SPDR Gold
115.65
|
|
+0.34%
|
+0.38%
|
+0.29%
|
-0.93%
|
Data delayed 20 minutes |
Connect with TheStreet