Sun Expects Q4 Revenue to Be Down by $1 Billion

By Chris Preimesberger  |  Posted 2009-07-14 Print this article Print

In what might be its final preliminary report on quarterly financials, Sun Microsystems said it expects revenues for the fourth quarter of fiscal 2009 to be down more than $1 billion from a year ago. Erstwhile owner Oracle doesn't seem worried, saying it expects Sun to add $1.5 billion per year to its own revenues.

In what might be its final preliminary report on quarterly financials, Sun Microsystems said July 14 that it expects revenues for the fourth quarter of fiscal 2009 to be in the range of $2.58 billion and $2.68 billion, down more than $1 billion from a year ago.

Sun recorded revenues of $3.78 billion for the fourth quarter of fiscal 2008. The 27-year-old Santa Clara, Calif.-based systems and software maker reported a $201 million loss on April 28 for its fiscal third quarter 2009.

Sun is in the process of acquisition by neighboring Oracle in a $7.4 billion deal announced April 20. The Department of Justice is now performing due diligence regarding antitrust issues; it took a second 30-day window of time beginning on June 26 to continue the research.

Approval would allow the proposed acquisition to proceed to the next levels of scrutiny: the Federal Trade Commission and the Securities and Exchange Commission.

A combined Oracle-Sun corporation would have a market capitalization of about $115 billion. At the present time, Oracle's market cap is about $107.6 billion; Sun's is just below $7 billion.

In a separate announcement, Oracle said it expects the acquisition of Sun to add a full $1.5 billion to its annual non-GAAP profit, and that the increase could improve to as much as $2 billion by 2011. Oracle is banking on Java licensing and services income, as well as Sun's storage division, to supply the bulk of the revenue.

Virtually all of Oracle's middleware runs on Sun's Java networking software.

Sun said it will not host its usual conference call for investors, analysts and reporters to announce its Q4 results. The numbers will be posted here upon the filing of Sun's annual report to the Securities and Exchange Commission for fiscal 2009, which is due by Aug. 31.

A special meeting of stockholders for the purpose of voting on the proposed acquisition of Sun by Oracle will take place at 10 a.m. Pacific Time on July 16. For more information regarding the proposed acquisition, go here.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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