Larry Qualig wrote:
> > Sun Beats Estimates with Narrower Loss, Revenue Up 17%
> > | Sun Microsystems reported a narrower loss in its fiscal first
> > | quarter, losing $56 million,
>
> <quote>
> Sun Is Setting: Fool by Numbers
> * 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
> offerings.
The point here is that they are now starting to level off after a fall;
they've got plenty of cash in the bank to ride through this transition
back to profitability. Sure, the traders would love to see lots of
wailing and moaning from high end engineers and developers being sacked
in massive quantities; but apparently thats not the plan. And to be
honest, as long as everyone over there is able to draw their salary,
and develop new products, they have a chance to pull it back up.
There was a point where I think people were concerned that Sun's losses
could eat them right out of business before turning it around. Now,
At a quarterly loss of $56 mil, I think you can just ditch that idea.
So, its time to watch and see what they are able to make happen.
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