Sun restructuring yields positive results

Preliminary financial results estimate fourth quarter revenue flat year on year, but profit is better than expected

Forecast profits beat analyst estimates

Sun Microsystems’ preliminary financial results for the fourth quarter of 2008 estimates revenue of between $3.73 (£1.86bn) and $3.8bn, compared to $3.84bn in the fourth quarter of 2007.

The company also anticipates net income per diluted share of between 25 (12.5p) and 35 (17.5p) cents, excluding a $100m restructuring charge, beating analyst expectations and pushing share values up 12.5 per cent.

Sun is engaged in a cost-cutting programme that saw chief executive Jonathan Schwartz pledge in May to slash a further 7.3 per cent of its workforce, on top of previous job cuts and property sell offs.

The company will report its full financial results on 1 August.