Not that we’d suggest Oracle is in any way acquiring a poison chalice, but the appeal of Sun Microsystems might be looking somewhat tarnished this week following news of increased recessional damage incurred by the renowned server and software maker.
Bleeding cash like crazy ahead of Oracle\'s purchase. Image: stopnlook/Flickr.
More pointedly, citing reduced technology spending and uncertainty regarding the company’s future in direct relation to IBM’s abrupt acquisition pullout and immediately prior to Oracle’s subsequently sweeping bid on April 02, Sun has revealed losses for the fiscal third quarter that run deeper than was originally thought.
In terms of figures collated ahead of Oracle’s accepted bid of $7.0 billion USD, revenues for the quarter (ending on March 29) plunged by some 20 percent to $2.61 billion USD, which is a further shortfall when gauged against analyst predictions of around $2.85 billion USD, reports Reuters.
Knock-on effects felt by Sun’s share value saw the company, which is known for creating Open Office and Java, losing 21 cents per share across the quarter, two cents more than financial analysts had expected.
Losing a significant 29 percent on computer sales and a further 20 percent on its data storage hardware while customers hedged their bets and waited for Sun’s situation to fully unfold, the Santa Clara-based giant reported a net loss of $201 million USD, which is 27 cents per share – a sizeable plunge from the $34 million USD and four cent per share drop during the same period last year.
The Tech Herald: IBM long forgotten as Oracle snaps up Sun Microsystems
The Tech Herald: Sun Microsystems targeted in IBM acquisition?
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