On April 24 2006, Sun Microsystems (NASDAQ:SUNW) released Q3 2006 earnings for the period ended March 26, 2006.

  • Sales earnings came up short of Street expectations, but the company delivered on per-stub earnings expectations, according to Capital IQ, a division of Standard & Poor's.
  • It may not get better soon. In Q2, management said it had underestimated demand for its servers and, as a result, inventory spiked by 28% year over year. The plan was to see the backlog relieved by the end of Q3 or Q4, but Sun's inventory build on a percentage basis has accelerated over the past three months, up another 48% year over year. Ouch.
  • Scott McNealy, a Sun founder and CEO for 22 years, has stepped down, but will remain as chairman of the board. Company president Jonathan Schwartz will assume the top job.

(Figures in millions, except per-share data)
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Margin Checkup

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Balance Sheet Highlights


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Cash Flow Checkup*

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*Cash flow numbers calculated on a trailing nine-month basis.

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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 contributor Tim Beyers didn'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 Fool profile. The Motley Fool has an ironclad disclosure policy.