Sun Microsystems Reports $209 Million Loss
By Anna Johnson on January 30th, 2009Sun Microsystems – which I love because it makes the open source software suite, Open Office – also reported a loss for its second fiscal quarter ended December 28, 2008.
Sun’s loss of $209 million was not just due to a fall in sales of its servers and data-storage machines. As with Yahoo’s net loss, it also reflects a large restructuring charge for job cuts.
Taking the $222 million restructuring charge out of the picture, Sun would have earned $114 million in profit. This is, however, down from the profit of $260 million the company made in the second quarter of 2008.
Sun’ sales dropped by almost 11 percent from $3.62 billion a year earlier to $3.22 billion. The company said its proposed job cuts – some 6,000 of its 33,000 strong workforce – will save up to $800 million a year.
Source: The Associated Press, “Sun’s Loss Reflects Revamping Costs,” The New York Times, January 27, 2009
