Sun Microsystems ( JAVA) expects first-quarter earnings and revenue to fall short of current Wall Street expectations, as the slowing economy hits the tech vendor and its customers.The hardware giant said Monday it expects revenue of $2.95 billion to $3.05 billion, below current analyst estimates of $3.14 billion. A year ago, the company posted revenue of $3.22 billion. Sun expects gross margins of 39% to 41%. The company also anticipates it will lose 25 cents to 35 cents a share, including a previously announced $60 million restructuring charge. Excluding items, Sun expects to lose 2 cents to 12 cents a share. On that basis, analysts were expecting a loss of a penny a share. Sun also has found tha the fair value of one or more of its business units has likely been reduced below its carrying value. The company is conducting an interim goodwill impairment analysis to determine the required amount of the non-cash impairment charge, if any. As of Sept. 28, prior to the impact of this potential non-cash impairment charge, Sun's total goodwill balance was $3.2 billion, of which $1.8 billion relates to reporting units that may be impaired. "Sun and its customers are seeing the impact of a slowing economy. We believe we are positioned to offer the kinds of products that can radically help customers reduce expenditures for their infrastructure from Open Storage to Solaris-based Chip Multi-Threading (CMT) systems to offering the most eco-efficient systems in the market," said Jonathan Schwartz, CEO of Sun Microsystems.