Sun's Sales Come Up Short
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Sun Microsystems reported quarterly earnings late Monday that met Wall Street estimates, but the company's sales came up short of forecasts.
Net income was $89 million, or 3 cents a share, meeting estimates and reversing a year-ago loss of $56 million. Sales were up 1% from the year-ago quarter to $3.22 billion, but that was $50 million below estimates. Gross margins were up five percentage points to 48.5.
"We showed continued execution and operating discipline and delivered a very solid first quarter with continued revenue growth, profitability and gross margin expansion," Sun CEO Jonathan Schwartz said in a statement.
After rising 2% during the day, Sun shares declined 2.8% in after-hours trading.
Monday's trading session was once again dominated by steep losses in financial stocks like Citigroup, which fell 5% as it began a search for a new CEO and said it faces an additional $8-$11 billion in credit market losses. The Nasdaq, like its blue chip counterparts, ended the day half a percent lower.
IAC/InterActive rose 7.5% on plans to split its Internet empire into five publicly traded businesses, including its HSN home shopping network, Ticketmaster, Interval time-share business and LendingTree. About 30 Web-based properties will remain part of the core company.
Google shares hit a fresh all-time high after the company revealed its wireless plans.
EMC lost 4% on worries about loss of business and new competition after partner Dell plunked down $1.4 billion for EqualLogic.
Cisco edged 1.8% higher ahead of its earnings due out late Wednesday.
Mentor Graphics fell on a warning, while Multi-Fineline gained 21% on its results.
Time Warner was little changed on news that CEO Richard Parsons is leaving.
The Nasdaq lost 15 to 2795, the S&P fell 7 to 1502, and the Dow lost 51 to 13,543. Volume declined to 3.87 billion shares on the NYSE, and 2.16 billion on the Nasdaq. Decliners led by a 25-7 margin on the NYSE, and 20-9 on the Nasdaq. Downside volume was 76% on the NYSE, and 62% on the Nasdaq. New highs-new lows were 68-307 on the NYSE, and 95-325 on the Nasdaq.