Sun Microsystems will probabaly report a loss in its first fiscal quarter, which ended on 28 September. Figures will be released on 20 October, but are expected to include a loss of 25 cents to 30 cents per share, with sales down from the same quarter last year.
Total sales revenues are expected to be between $2,95-billion and $3,05-billion, compared to $3,2-billion last year.
Total gross margin as a percent of revenues for the first quarter of fiscal 2009 is expected to be in the range of 39% to 41%.
"Sun and its customers are seeing the impact of a slowing economy. We believe we are positioned to offer the kinds of products that can radically help customers reduce expenditures for their infrastructure from Open Storage to Solaris-based Chip Multi-Threading (CMT) systems to offering the most eco-efficient systems in the market," says Jonathan Schwartz, CEO of Sun Microsystems.
Based on a combination of factors, including the current economic environment, Sun's operating results, and a sustained decline in Sun's market valuation, the cmpany has concluded that it is likely that the fair value of one or more of its reporting units has been reduced below its carrying value.
As a result, Sun is currently conducting an interim goodwill impairment analysis to determine the required amount of the non-cash impairment charge, if any. As of September 28, 2008, prior to the impact of this potential non-cash impairment charge, Sun's total goodwill balance was $3,2-billion of which $1,8-billion relates to reporting units that may be impaired.