Sun expects sharp revenue drop ahead of Oracle vote

Its revenue will be about $US1 billion less than in the same quarter last year, the company said

Sun Microsystems said it expects to report a sharp drop in sales for the June quarter as it prepares to put its planned acquisition by Oracle to a shareholder vote later this week.

Revenue for Sun's fourth fiscal quarter, ended June 30, is likely to be between $US2.58 billion and $US2.68 billion, down from $US3.78 billion in the fourth quarter last year, Sun said on Tuesday.

The loss is expected to be in the range of $US0.06 to $US0.16 per share, wider than the $US0.03 per share that analysts had been expecting, according to Thomson Reuters.

Sun is due to report its full results no later than Aug. 31, the company said.

Oracle, which announced in April that it plans to buy Sun for $US7.4 billion, said on Tuesday that it still expects the deal to add to its earnings in the first full year after closing.

Sun's shareholders are due to vote on the merger Thursday morning, at a special stockholder meeting in Santa Clara, California. A majority of Sun's outstanding shares must be voted in favor of the deal for it to go ahead. Sun's board has recommended voting in favor of the agreement.

Sun stockholders would receive $US9.50 in cash, before taxes, for each Sun share they own. Sun's shares were trading at $US9.17 late Tuesday afternoon, up from $US5.98 before the agreement with Oracle was announced.

Oracle CEO Larry Ellison has said he bought Sun primarily for its software assets, but in a move to quell concerns among Sun customers he also pledged to continue the development of Sun's Sparc processor.

"Sun was very successful for a very long time selling computer systems based on the Sparc chip and the Solaris operating system," Ellison said in a May regulatory filing.

"Now, with the added power of integrated Oracle software, we think they can be again."

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags mergers & acquistionsOracle-Sun mergerSun MircosystemsOracle

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?