Network computer maker Sun Microsystems last night posted a narrower quarterly net loss on slightly lower revenue that fell less than expected amid rising services revenue.
Sun shares initially rose in after-hours trade following the release of earnings, then eased again.
For the second quarter ended December 28th, Santa Clara, California-based Sun said it had a net loss of $125 million, or four cents, compared with a year-earlier net loss of $2.28 billion, or 72 cents a share, which included $2.13 billion to write down good will and other items.
Revenue fell to $2.89 billion from $2.92 billion, topping cautious Wall Street expectations by 5 per cent. Revenue rose 13.9 per cent from the prior quarter, the highest sequential growth from the first quarter to the second since 1998, the company said in a statement.
A rise in services revenue in the quarter, to $944 million from $902 million a year earlier, failed to offset declining product revenue, which fell slightly to $1.94 billion from $2.01 billion.