Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Sun's Storage Rebounds

Sun, which swallowed StorageTek for $4.1 billion last year and has undergone a massive restructuring effort in recent months, showed the first signs of storage regrowth in its fourth-quarter results last night. (See Sun Gains Momentum and Sun Closes on StorageTek .)

The vendor, which posted total revenues of $3.83 billion, up 29 percent from the same period last year, comfortably beat analyst estimates of $3.61 billion. Sun attributed this revenue hike, in part, to the StorageTek acquisition. (See The Power of Two and Stomping With Sun.)

But the vendor posted a net loss for the quarter of $301 million, or $0.09 per share, down from a $50 million, or $0.01 per share, loss in the year-ago quarter. That figure dipped well below analyst estimates of a $0.03 loss.

Sun blamed its loss largely on the costs associated with its internal overhaul and recent acquisitions, which include both StorageTek and the $387 million deal for software specialist SeeBeyond. (See Sun Issues Growth Plan, Sun Takes Action Amidst Concerns, Sun to Buy SeeBeyond, and SeeBeyond Sucked Into Sun.)

"We have wasted no time in making some tough decisions," explained Jonathan Schwartz, who took over as CEO from Scott McNealy earlier this year, prompting mass layoffs and major personnel changes. (See Schwartz Shakes Up Sun, Sun's McNealy Steps Down, Sun Names Storage Boss, and Advice for Sun.) "I am pleased with our initial progress and the results we're announcing," he added.

  • 1