Sun microsystems has reported a huge loss which is more compared to the losses it posted last year. Last year the company reported a net loss of $34 million on revenues of $3.27 Billion. This year the loss only seems to have dramatically increased to $201 Million on the revenues of $3.27 billion.
This news comes in light of Oracle announcing that it is going to buy the company for $7.1 Billion. Looks like the customers of Sun are not happy with it and they do seems to have lost trust in the company’s future developments. Previously IBM tried to take over the company but failed to reach an agreement.
But the reason of the losses can also be explained differently. It could be due to the credit crunch blues that many other companies are facing at this times of global recession. But what is more worrying is that it’s high end systems which use SPARC RISC chips fell by almost a third during the firm’s third quarter.
Sun’s sales of x86 architecture based systems also fell by fifth. But that’s in line with statements made by AMD’s CEO Dirk Meyer, who said in a financial conference call recently that few corporations and large organisations are prepared to spend on server systems right now.
At this point though Sun isn’t really making any good progress and only seems to be failing more. Lets see how its future is with Oracle. Hope Oracle will figure a way out to save the company.