Updated from 5:06 p.m. EDTSun Microsystems ( JAVA) suffered widening losses and took a third-quarter revenue hit as the tech giant limped toward its impending purchase by Oracle ( ORCL). Sun's sales plunged as the firm wrestled with a tough spending climate and stiff competition from the likes of IBM ( IBM) and Hewlett-Packard ( HPQ). The Santa Clara, Ca.-based firm reported revenue of $2.6 billion, down from $3.3 billion in the same period last year, and well below analysts' estimate of $2.86 billion. Sun's shares slipped 1 cent, or 0.11% in extended trading to $9.15. The server and software company, which recently signed an agreement to be acquired by Oracle for $7.4 billion, posted a loss of 27 cents a share on a net loss of $201 million, compared to a loss of 4 cents a share and a loss of $34 million in the year-ago quarter. Sun's most recent quarter, however, included a $46 million restructuring charge. Excluding charges, Sun reported a loss of 7 cents a share on a net loss of $52 million, down from a profit of 17 cents a share and net income of $132 million in the prior year's quarter. Analysts, however, had been expecting a loss of 19 cents a share. The troubled tech giant, which was courted by IBM ( IBM) before Oracle made its bid earlier this month, has had a difficult few years. The former darling of the dot.com era has earned a reputation for under-performing and has been dogged with execution issues and losses in the last few years, which culminated in the company's sale.
Competitors such as Dell ( DELL) have also been looking to exploit the uncertainty that has surrounded the firm and woo Sun customers onto their own technology. Even one-time suitor IBM has been turning the knife, and recently issued a statement saying that more than 100 companies worldwide chose IBM servers over Sun and Hewlett-Packard during the first quarter of this year. In a clear sign of its changing status, Sun did not host a press conference to discuss its results, opting instead to send out a press release and post a series of financial slides on the investor relations section of its website. Even Sun's press release was unusually devoid of comments from the firm's CEO Jonathan Schwartz.