Sun profit plunges 73 per cent

And the company is unlikely to turn profit in the next quarter

Sun has had five quarters in profit which followed years in the red

Profit at Sun Microsystemsplunged by 73 per cent in its latest trading quarter, as poor sales in the US and restructuring costs take their toll on the server and software house.

Sun reported a net income of $88m (£44.5m) for its fiscal fourth quarter, compared to $329m for the same period a year ago. Revenue reached $3.78bn, down 1.4 per cent from $3.8bn reported in the same period last year.

The company also announced it intends to expand its share buyback scheme by $1bn, sparking market speculation that the company believes its shares are undervalued.

Sun also forecast a "slight" sales decline in the fiscal first quarter, which ends in September, and signalled it would not likely generate profit.