Because of regulatory requirements, Sun will introduce the stock option accounting Nov. 1 when it reports results for its fiscal 2006 first quarter, which ended Sept. 30.
Merrill Lynch analyst Richard Farmer said in a research note Thursday that he expects the accounting change to reduce Sun's earnings by 2 cents per share to a loss of 4 cents. His projections forecast Sun performance below average expectations for the quarter, a loss of 1 cent per share. But Banc of America Securities analyst Keith Bachman said Thursday he expects Sun to meet that consensus expectation.
CEOis an outspoken of , an accounting move that directly diminishes a company's profit. Sun has been and to sidestep some expenses.