Sun Q3 revenues fall short of expectations

Sun's third quarter financial results fell short of analyst expectations. The company reported a $61 million loss and declining revenues.

The rough ride continues for Sun Microsystems, which on Thursday reported financial results that again fell short of Wall Street expectations. The computer maker reported revenues of US$2.625 billion for its third fiscal 2004 quarter, which ended March 27.

Sun reported a net loss of $61 million or $0.02 per share, when calculated on a non-GAAP (generally accepted accounting principles) basis.

The earnings results were an improvement from its year-ago quarter, when the company lost $0.08 per share, but revenues were down slightly from the year-ago total of $2.651 billion.

Analysts had been expecting revenues of $2.736 billion and break-even earnings, according to a survey of financial analysts conducted by Thomson First Call.

Sun missed analyst expectations last quarter as well, and the company has now failed to increase revenues by more than 1 percent for 16 consecutive quarters.

In a statement, Sun Chief Executive Officer Scott McNealy put a positive spin on the news, saying that break-even was a "huge move forward," from the loss the company experienced a year ago. Better-than-expected adoption of the company's new Solaris 10 operating system and growth in the company's line of x86 servers were bright spots for the company, McNealy said. Sun's x86 servers use processors built by Intel and Advanced Micro Devices.

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