Sun Microsystems narrows Q1 net loss

Sun Microsystems [NasdaqNM:SUNW] fell below its reduced revenue targets but also managed to narrow its loss for its fiscal first quarter.

It also announced plans to cut 11% of its workforce, as the company is attempting to address weaker budgets in the corporate server market, as well as increased competition from other vendors.

Booked revenues fell some 4% to US$2.75bn (€2.76bn), and led to a net loss of 2 cents a share, after other tax, investment and restructuring charges are taken into account. In addition to the planned reductions in staff numbers, the company will also reduce and eliminate excess space.

"These actions are necessary to restore Sun to profitability and are in the interests of the long-term stakeholders', added CFO Mr Steve McGowan, in a prepared statement.

"Tough times require tough decisions," added CEO Mr Scott McNealy; "Everyone at Sun is committed to returning the company to profitability as soon as possible," he commented.