2009-Apr-28 - Sun Micro loss surges as margins shrink

BOSTON (Reuters) – Computer maker Sun Microsystems (JAVA.O) reported a surge in its quarterly loss as sales fell because of declining technology spending and uncertainty over the struggling company's future.

Excluding restructuring charges and related impairment of long-lived assets, Sun lost 21 cents per share in its fiscal third quarter, ended March 29. That compared with the loss of 19 cents a share expected by analysts, according to Reuters Estimates.

Revenue at the company, which is being acquired by Oracle Corp (ORCL.O), fell 20 percent to $2.61 billion, compared with an average forecast of $2.85 billion.

Gross margin shrank 2.2 percentage points from a year earlier to 42.7 percent.

The company reported a net loss of $201 million, or 27 cents per share, versus a year-earlier loss of $34 million, or 4 cents.

Shares of the Santa Clara, California-based company were unchanged in extended trade from their Nasdaq close of $9.16.

(Reporting by Jim Finkle; Editing by Steve Orlofsky)

Sun Micro loss surges as margins shrink