(Associated Press via NewsEdge) Server and software maker Sun Microsystems swung to a fiscal fourth-quarter loss as restructuring, acquisition and stock-based compensation costs absorbed revenue that grew 29% and exceeded analysts' expectations.
The company lost $301 million for the three months ended June 30, compared to net income of $50 million, in the same quarter of last year.
Sales rose to $3.83 billion, from $2.97 billion.
With annual revenue that has declined in four of past five years, the company has wracked up net losses of more than $5.33 billion since 2002, when computer-related spending dried up and lower-cost offerings from competitors encroached on Sun's turf.
But 2006 revenue grew 18%, and executives speaking on a conference call reiterated comments from May that they are feeling more confident that business is stabilizing. Shares rose after Sun CFO Mike Lehman reiterated a forecast for Sun to turn a profit in the fourth quarter of this fiscal year.
Sun's results included at least $509 million in one-time expenses, including $228 million for restructuring, $156 million for acquisitions and $63 million for stock compensation, the company said. They were offset by income of $54 million in a legal settlement with Microsoft and an $8 million tax benefit.
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