The management at Sun Microsystems (NASDAQ: JAVA) keeps saying that things will get better. The group is good at cutting costs. But the company has become a "no growth" operation.
Revenues for the first quarter of fiscal 2008 were $3.219 billion, an increase of approximately 1 percent as compared with $3.189 billion for the first quarter of fiscal 2007. Wall Street had expected a 2.5% improvement. Net income for the first quarter of fiscal 2008 on a GAAP basis was $89 million, or $0.03 per share on a diluted basis, as compared with a net loss of $56 million, or $0.02 per share, for the first quarter of fiscal 2007. That is about what analysts expected.
Sun really only had one thing to prove this quarter, which is that after all the announcements about Java initiatives and news servers, it could improve its revenue.
That did not happen.
Douglas A. McIntyre is an editor at 247wallst.com
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