Roy Schestowitz wrote:
> Sun Beats Estimates with Narrower Loss, Revenue Up 17%
> ,----[ Quote ]
> | Sun Microsystems reported a narrower loss in its fiscal first
> | quarter, losing $56 million, or $.02/share -- beating the
> | -$.04/share estimate of analysts surveyed by Thomson Financial
> | -- on a 17% increase in revenue to $3.19 billion, compared to
> | last year's Q1 loss of $123 million, or $.04/share. Sun said
> | its cost cutting efforts, and market acceptance of its Solaris
> | 10 operating system and Sun Fire servers are confirmation of
> | its business strategy.
Things aren't quite as sunny over at Sun as you portray.
Sun Is Setting: Fool by Numbers
On Oct. 26, enterprise computing specialist Sun Microsystems (Nasdaq:
SUNW - News) released first-quarter 2007 earnings for the period ended
Oct. 1, 2006.
* The cash balance has certainly improved, but not by positive cash
flows from operations. Over the past year, Sun has converted $4.2
billion of its long-term investments to cash, leaving only $700 million
on that line. At least the company hasn't resorted to large secondary
* $427 million of new revenue only resulted in a $67 million
improvement on the bottom line. Not much blood dripping from this
* On the bright side, Sun is converting its inventories into cash
faster than last year, thanks to small improvements in all three
components of the cash conversion metric. Pinch a penny, save a pound.