Sun misses analyst forecasts for revenue, earnings

From CNET News.com: Sun Microsystems reported a 7 percent drop in first-quarter revenue on Thursday, coming in the midrange of its previously lowered earnings forecast.

The embattled hardware maker posted revenue of $2.99 billion for the quarter, a drop from its year-ago performance.

Sun also posted a net loss of $1.68 billion, or $2.24 a share, for the first quarter, compared with a net profit of $89 million, or 10 cents a share, a year ago. Excluding its restructuring charge and write-offs for the declining value of its goodwill, Sun posted a net loss of $65 million, or 9 cents a share.

Sun, which issued an earnings warning last week, missed analysts' revised revenue projections of $3.06 billion, according to Thomson Reuters. And the company also missed analysts' earnings expectations of a loss of 8 cents, coming in with a slightly larger loss than Wall Street expected of 9 cents a share.

"Although we saw another quarter of growth in our Solaris-based chip multi-threading and open storage systems, the economic downturn continued to weigh on our customers, especially those that contribute to our traditional high-end businesses," Jonathan Schwartz, Sun CEO, said in a statement.

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