Sun Microsystems, Inc. (NASDAQ:JAVA) just posted a wide loss for the quarter. Like that was a hard guess. The company posted a 10% drop in revenues to $3.22 billion, and it claims gross margins even after a 6.6-point drop were 41.9%. First Call had revenue expectations of $3.16 billion in revenues.
The loss was $209 million on a GAAP basis and it posted positivenon-GAAP earnings at $0.15 EPS. First Call had those estimates at-$0.10 EPS.
The company ended the quarter with a hair over $3 billion in cash and equivalents. But it did not give any formal guidance in its report. Schwartz and friends eitherwant to maintain analyst relevance by making everyone listen to thecall, or it is adopting the no-guidance stance we are starting to seemore and more.
Shares closed up over 5% at $3.99 today, and what is amazing is theafter-0hours reaction. Shares are up close to $4.30 in the initialreaction. Until the company gives guidance or says it won’t offerguidance, you might want to consider this a highly incomplete set ofdata.
Jon C. Ogg
January 27, 2009