Goldman cuts Sun Micro estimates

NEW YORK: Goldman Sachs on Monday said it lowered its fiscal-and

calendar-year 2002 estimates for network computer maker Sun Microsystems Inc.

after the company cut jobs and warned of larger-than-expected first-quarter

losses.

Analyst Laura Conigliaro lowered estimates for Sun's fiscal year 2002

revenues to $12.8 billion from $13 billion and calendar year 2002 revenues to

$14.4 billion from $14.6 billion.

She also lowered her fiscal year 2002 results estimate to a loss of 6 cents

per share loss from nil and calendar 2002 estimate to a profit of 16 cents per

share from 24 cents per share. The analyst did not change her outlook for the

September quarter, and said the company has taken some positive steps.

"Sun Microsystems became one of the earlier companies to hit the re-set

button," she said. "It is finally biting the bullet on layoffs ...

with our expectation that there will be more to come."

On Friday, Sun said it would cut nine per cent of its work force, and that

its revenues would miss Wall Street expectations by up to $600 million because

of the Sept. 11 attacks and a weak economy. The company already warned of a

quarterly loss in late August. In late morning trade, the stock was off 11 cents

to $9.76 a share.

(C) Reuters Limited 2001.