Sun Microsystems has warned that revenue for its fiscal first quarter, which ended Sept. 28, will be $2.95 billion to $3.05 billion and its loss will be 2-12 cents per share, non-GAAP. Wall Street has been expecting revenue of $3.14 billion and a loss of one cent per share. In a news release, the company said:
Based on a combination of factors, including the current economic environment, Sun's operating results, and a sustained decline in Sun's market valuation, the Company has concluded that it is likely that the fair value of one or more of its reporting units has been reduced below its carrying value. As a result, Sun is currently conducting an interim goodwill impairment analysis to determine the required amount of the non-cash impairment charge, if any.
In after hours trading, shares of Sun were down 12 cents to $5.66. The company is scheduled to report quarterly on October 30, after the market close.
Also see: Paul Murphy: So what can Sun do?