Sun reports losses, layoffs (3,300 jobs)

[UpInArms]

http://www.marinij.com/Stories/0,1413,234~26641~2088179,00.html

SAN JOSE - Sun Microsystems Inc. posted a larger-than-expected loss in its fiscal third quarter yesterday as the computer and software maker continued to lay off workers and reorganize amid blistering competition from rivals.

Sun reported a net loss of $760 million, or 23 cents per share, compared to net income of $4 million, or break-even per share, in the same quarter last year. The company had revenue of $2.65 billion for the quarter, down 5 percent from $2.79 billion in the same period of 2003.

Santa Clara-based Sun spent more than $200 million during the quarter ending March 28 to pare its 35,400-member workforce and vacate real estate near its pricey Silicon Valley campus. Chairman and chief executive Scott McNealy announced earlier this month that Sun would slash 3,300 jobs during the current quarter, or 9 percent of its staff.

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[Mithridates]

1. Losing to Linux

For too long Sun stuck with the proprietary SPARC processor, conceding the X86 world to Linux. The Solaris 8 that ran on X86 was just a kit with little freeware, few drivers, and little support. It is only with Solaris 8 and the upcoming Solaris 10 that they have gotten serious about competing in the X86 world.

The key sign of seriousness is Oracle. Oracle 8/9 never really paid any attention to Solaris 8 or 9 on X86. And if Oracle won't run on it, then it isn't a business platform. Now Oracle has announced that Oracle 10 will indeed run on Solaris 10 X86.