Sun Expects Q4 Revenue to Be Down by $1 Billion
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.