No signs of recovery in sight for Sun Microsystems, one of Silicon Valley’s former bellwether, which swung again to a loss.
For the quarter ending last December, the Santa Clara, Calif.- company posted a loss of $209 million – affected by a $222 million restructuring charge – and declining revenues of $3.22 billion. Sun’s server revenue fell 14 percent, to $1.37 billion. Storage revenue fell 13 percent, to $570 million.
However, Sun’s software business – including Java and open source software – constitutes a bright spot growing 21 percent year over year, now at an approximately $600 million annual run rate based on first and second quarter fiscal 2009 results.
Sun Microsystems ended the last quarter with $1,630 billion in cash and/or equivalents and has a current market capitalization of less than $3 billion. Which could be seen as being undervalued if not for its dismal outlook.
Looking ahead, Sun CFO Mike Lehman expects indeed revenues to decline on the current quarter, a mix of typical seasonal decline and high-end computers purchase delays from large corporations.
