Sun expects net loss, lower sales for quarter
On the eve of Oracle's expected buyout, Sun eyes a loss of 24 cents to 34 cents a share and sales of $2.58 billion to $2.68 billion.
Just days ahead of the stockholder meeting to vote on its takeover by Oracle, Sun Microsystems is projecting a net loss and lower revenue for the fourth quarter of its fiscal 2009.
Sun announced Tuesday that it expects to see a net loss of between 24 cents and 34 cents per share for the quarter ended June 30. Excluding special nonrecurring items, the loss is likely to hit anywhere from 6 cents to 16 cents a share.
The company also anticipates sales in the range of $2.58 billion to $2.68 billion for the quarter, down from $3.78 billion for the year-ago quarter.
Analysts surveyed by Thomson Reuters, who exclude special items from their forecasts, had been looking for a loss of a penny per share with sales of $3.03 billion.
Sun said it will not host a conference call to discuss the fourth-quarter results. The company expects to post final results on its Web site upon the filing of its annual report, due no later than August 31.
In the meantime, Sun stockholders are set to vote Thursday whether to accept the proposed takeover bid from Oracle.
Oracle has said it expects Sun to add to at least 15 cents a share before special items to Oracle's earnings in the first full year after the deal closes, bringing in an extra $1.5 billion in adjusted earnings in the first year and more than $2 billion the next.