Java Industry News
Sun’s Books Bleed - Company Plans To Write Down the Value of its Business
Sun, which is losing share in servers, reports its fiscal first on October 30
Oct. 21, 2008 07:00 AM
Rather than wait for Halloween to scare its remaining stockholders silly Sun announced its September results early.
It said Monday it’s going to lose 25 cents-35 cents a share (GAAP) on revenues of $2.95 billion-$3 billion, down from $3.2 billion this time last year. It figures its gross margin will be between 39% and 41%.
The loss includes a restructuring charge of roughly $60 million stemming from the layoffs it announced August 1. Without charges, losses would be between two-12 cents a share.
The company also said that between the environment, its operating results and the decline in its market valuation the fair value of one or more of its reporting units has probably been reduced below their carrying value. So it’s doing an interim goodwill impairment analysis to determine the amount of any non-cash impairment charge.
It didn’t say which units.
Sun’s total goodwill balance has previously been $3.2 billion of which $1.8 billion relates to reporting units that may be impaired.
CEO Jonathan Schwartz blames the slowing economy even though he thinks Sun’s freebie open source products can “radically help customers reduce expenditures for their infrastructure.
Sun, which is losing share in servers, reports its fiscal first on October 30. It was expected to loss a penny (non-GAAP) on $3.1 billion.