Tuesday, January 24, 2006

Sun Microsystems stumbles in its latest quarter too

Oops, there goes another disapointing set of numbers by a bellweather tech company. This time it's Sun that is biting investor dust as it announces lower than expected earnings in the last quarter of 2005.

Sun Microsystems has just posted results that missed analyst expectations on higher costs even as revenue rose, helped by the acquisition of Storage Technology Corp. Its shares are ticking lower in afterhours trade.

But, at least their revenues are finally heading north again and Scott McNeally has been quick to point out that their order backlog is large and their line-up of products has never looked better. He may even be right, but you just can't help feeling that Sun still need to make a transformational move to get a real future.

M&A or bold new product directions have to be the way to go for them. Maybe they could get more mileage out of their partnership with Google. How about an Internet appliance or taking their office suite onto Google servers and into Google Pack.

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