DOW JONES NEWSWIRES
Sun Microsystems Inc. (JAVA) projected a steeper fiscal
fourth-quarter loss and lower revenue than Wall Street had, in what
may be its last quarterly report as an independent company.
The projected results would continue a string of losses that
pushed the computer hardware and software maker into the arms of
networking giant Oracle Corp. (ORCL). Once a Silicon Valley giant,
Sun has seen sales slump for its servers as customers pared back
spending on its high-end products when competitors swooped in with
cheaper options.
Sun projected a loss, excluding items, of 6 cents a share to 16
cents a share on revenue of $2.58 billion to $2.68 billion.
Analysts polled by Thomson Reuters recently forecast a 1-cent loss
on revenue of $3.03 billion.
Oracle separately said Tuesday it expects the $7.38 billion Sun
acquisition to add at least 15 cents a share to its earnings in the
first year after the deal closes. The deal, expected to close this
summer, requires regulatory and shareholder approval. Sun
shareholders are set to vote on the deal Thursday.
Sun shares were down 2 cents at $9.14 in recent premarket
trading; Oracle's offer is $9.50. Oracle was up 1.3% to $20.99.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com