Sun's results fail to shine
Vendor sees turnover rise, but loss increases
Sun posted a 17 per cent increase in turnover for its second quarter 2006 results, but attributed its significant loss to restructuring and acquisition costs.
Q2 turnover stood at $3.3bn compared to $2.8bn, but revealed a net loss of $223m compared with a profit of $4m in the same quarter a year ago. The vendor claimed the loss includes $145m of purchase price accounting adjustments and $10m of restructuring charges.
Scott McNealy, chief executive of Sun said: "The backlog is the highest in years and this increase in bookings and demand is driving improved business fundamentals. The uptick in demand is due to the game changing technologies we've delivered to market over the last several quarters that are setting new standards for performance, price and efficiency.
"From our x64 Sun Fire servers and the Sun Fire T2000 server based on the CoolThreats T1 processor, to UltraSPARC IV+, to Solaris Operating System demand has clrearly improved as a result of our investment in R&D," he said.