On Jan. 24, Sun Microsystems (NASDAQ:SUNW) released Q2 2006 earnings for the period ended Dec. 25, 2005.

  • Sun's net loss included several special items, including $145 million for accounting adjustments and amortization from recent acquisitions, $10 million in restructuring charges, $14 million for a gain in equity investments, and a $3 million tax benefit. Together, these charges cost the company $0.04 per share. Stock-based compensation subtracted another $0.02. Combined, they brought Sun's adjusted net loss to $0.01, or in line with analyst projections.
  • Sales of $3.34 billion were well short of Street estimates, however. And it isn't the first time that's happened, either.
  • Executives say revenue suffered because Sun underestimated demand for its servers. Whoops. Management expects the backlog to be relieved by the end of Q3 or the beginning of Q4, according to The New York Times.

(Figures in millions, except per-share data)

Income Statement Highlights

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Margin Checkup

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Balance Sheet Highlights


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Cash Flow Highlights*

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*Cash flow data for last six months of respective periods
**Capex for 2006 includes cash outlays associated with acquisitions

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Related Companies:

  • Apple (NASDAQ:AAPL)
  • Dell (NASDAQ:DELL)
  • Hewlett-Packard (NYSE:HPQ)
  • Microsoft (NASDAQ:MSFT)

Related Foolishness:

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Fool contributorTim Beyersdidn't own shares in any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Foolprofile. The Motley Fool has an ironcladdisclosure policy.