This Company Is Missing The Boat
SUNW reported earnings last night.
What a bomb….
Operating Expenses are still too high — as a percentage of
revenues, which havent been growing — so Sun is back to delivering operating
losses… yet again. many have claimed that Sun’s R&D expense is an investment
in IP and innovation; but at this rate, Sun will innovate itself out of
business.
Management now expects Fiscal 2006 to be only breakeven.
Sun’s US business doing better than international, which isn’t surprising
since Sun is less focused with its international operations (which should be
more localized than they are now) than its domestic operations.
Sun’s new Opteron Galaxy server is expected to be released
in September. However this new product may not (and, in my opinion, probably
won’t) save Sun or even stem the business declines.
Sun remains focused on “closed-system” Solaris; however, the
industry continues to move to Linux. Opening up java won’t help (as I’ve
commented in
a recent column.
Sun is missing the boat and falling gradually further behind
.
Melanie Hollands
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