Java News from Friday, October 15, 2004

Sun announced financial results for the first quarter of their fiscal year that ended September 26. Sun lost $174 million, 5 cents per share, down from a $286 million, or 9 cents a share loss in the same quarter a year ago. This includes an $82 million charge to satiate the patent leeches at Kodak. (I don't know all the terms of the settlement. Kodak's case seemed weak to me, but maybe Sun got more from the deal than just a settlement of one patent claim. For instance, these cases often end with a broad patent colicensing agreement that might have been worth more than the one very qustionable patent Kodak was litgating.) It also includes $108 million for cuts in workforce and real estate. Sun laid off 2900 more workers in the quarter and gave notice to 600 more. Our thoughts are with all the displaced people. Revenue grew 3.6 percent to $2.63 billion. Gross margins grew to 42.9%.