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In The News: Sun Microsystems - Sun Solaris

Excerpt: # # In order to get to break-even fast, job cuts are inevitable, # Mr. Milunovich said. He recommended job cuts of 5,000 to 7,000, # which would boost earnings per share by 10 cents to 15 cents. ---- http://online.wsj.com/ Sun Micro CEO Gains $6.6M From Exercising Options In '03 # # WASHINGTON -- Sun Microsystems Inc. (SUNW) Chairman and Chief # Executive Scott McNealy gained about $6.6 million from exercising # options in fiscal 2003, according to proxy materials filed # Thursday with the Securities and Exchange Commission. http://online.wsj.com/ # # CLOUDS OVER SUN # # yst Urges ...

  1. #1

    Default In The News: Sun Microsystems

    Excerpt:
    #
    # In order to get to break-even fast, job cuts are inevitable,
    # Mr. Milunovich said. He recommended job cuts of 5,000 to 7,000,
    # which would boost earnings per share by 10 cents to 15 cents.

    ----

    http://online.wsj.com/

    Sun Micro CEO Gains $6.6M From Exercising Options In '03
    #
    # WASHINGTON -- Sun Microsystems Inc. (SUNW) Chairman and Chief
    # Executive Scott McNealy gained about $6.6 million from exercising
    # options in fiscal 2003, according to proxy materials filed
    # Thursday with the Securities and Exchange Commission.


    http://online.wsj.com/
    #
    # CLOUDS OVER SUN
    #
    # yst Urges Job Cuts, New Focus for Sun Micro
    # October 2, 2003
    #
    # In an open letter to Sun Microsystems Inc. Thursday, Merrill
    # Lynch yst Steven Milunovich urged Chief Executive Scott
    # McNealy and the board to cut costs and to focus on core computing.
    #
    # The yst's note came on the heels of Monday's warning that
    # Sun's first quarter would fall short of Wall Street expectations
    # due to intense competition and a tough market environment. The
    # company revised its fourth-quarter results to include a $1.05
    # billion charge to increase a valuation allowance for deferred
    # tax assets.
    #
    # In Thursday's letter, Mr. Milunovich said that Sun has reached
    # "a point of crisis," and that on its current course, the company
    # "is likely to suffer further share and financial losses, become
    # irrelevant to most users and eventually be acquired for its
    # installed base. "
    #
    # Merrill Lynch yst Steve Milunovich says Sun Micro has to
    # become profitable, meaning job cuts and possibly unloading Java.
    #
    # To avoid this fate, Mr. Milunovich suggested Sun should accept
    # being a "successful niche company in mission critical computing."
    # The company must also become profitable quickly, he wrote.
    #
    # The Santa Clara, Calif., company's break-even revenue level is
    # about $3 billion per quarter, but the only recent revenue result
    # that was even close was the June quarter, which is traditionally
    # strong, he said. Revenue was $2.98 billion in the second quarter
    # of 2003.
    #
    # In order to get to break-even fast, job cuts are inevitable,
    # Mr. Milunovich said. He recommended job cuts of 5,000 to 7,000,
    # which would boost earnings per share by 10 cents to 15 cents.
    #
    # The company also needs to narrow its focus, he asserted. "Our
    # sense is that there is little prioritization at Sun right now
    # ... . Sun is an innovator, but even IBM became selective about
    # its research and development efforts when the red ink flowed,"
    # the yst wrote.
    #
    # Mr. Milunovich suggested that Sun focus on creating core computing
    # systems, including operating systems through Solaris or Orion,
    # and through "Blades," which are lower-cost, less powerful servers.
    #
    # The yst also suggested some management adjustments. He
    # suggested Sun bring in a chief operating officer to watch over
    # the details of the business. He also said Mr. McNealy should
    # adjust his attitude.
    #
    # "Scott's brash and contrarian personality have been synonymous
    # with the company's image and success. Unfortunately, the act
    # is getting old," he said. Mr. Milunovich urged Mr. McNealy to
    # show more respect for the competition and for the company to
    # become a better business partner.
    #
    # The yst doesn't own shares of Sun although Merrill has a
    # 1% stake in the company and has recently done investment banking
    # for it.
    #
    # Responding to Mr. Milunovich's letter, Sun spokesman Michael
    # Hakkert said the company has been "doing a number of things to
    # bring back profitability."
    #
    # He said that though the company is not considering any major
    # restructuring involving layoffs at the moment, it has not ruled
    # it out either. Responding to charges that the company has not
    # done enough to prioritize, Mr. Hakkert said the company has been
    # focused on responding to customer demand. "Clearly, we've entered
    # a number of new markets," he said, particularly in lower cost
    # products, which Mr. Milunovich said the company should champion.
    #
    # Also, the spokesman said, the company remains committed to Linux
    # and now offers Intel-based servers that are extremely price
    # competitive.
    #
    # Shares of Sun fell 5 cents, or 1.5%, to $3.20 in 4 p.m. trading
    # on the Nasdaq Stock Market Thursday.
    Anthony Guest

  2. #2

    Default Re: In The News: Sun Microsystems


    "Anthony Mandic" <com> wrote: 
    [...] 
    [...]

    That Milunovich guy really pushes the term 'yst' to
    the next comedy level.


    Thomas
    Thomas Guest

  3. #3

    Default Re: In The News: Sun Microsystems

    Thomas Dehn <de> wrote: 
    > [...] 
    > [...]
    >
    > That Milunovich guy really pushes the term 'yst' to
    > the next comedy level.[/ref]

    If only Sun could go private to avoid all that chatter.

    I admit to not knowing the implications of that though.
    Cypherpunk@nyc.rr.com Guest

  4. #4

    Default Re: In The News: Sun Microsystems

    On Fri, 03 Oct 2003 03:52:10 +0200, Thomas Dehn wrote:

     

    I haven't figured him out yet. Milunovich was the Sun cheerleader at
    Merrill when SUNW was at $50. He's been beating the 'Sun is irrelevant'
    horse ever since.

    He's also the yst who advised IBM to get out of PC manufacturing and
    "have Dell or Intel build PCs for IBM". That was in 1999....several years
    after IBM had outsourced virtually all PC manufacturing to Acer.

    He is firmly convinced that Sun should focus on Lintel. He sees no future
    in Sparc or Solaris. What that tells me is that he's never talked to
    anyone buying big Sun boxen. As for Linux replacing Solaris (or AIX or
    HP-UX or...) the kindest thing I can say is *SNORK*. In some applications,
    yes, although I'd prolly use BSD. Across the board? Not a chance, not yet.

    For the record, I have RedHat on my notebook. Solaris never quite figured
    out the poxy video controller and I never got 'round to playing with the X
    driver kit. Everything else is Solaris 9, 'cept for Sol10_b40 on the Blade
    100. That, and the Winders boxen.

    Ork is a mix of Sun/Solaris, Netware, Win2K, and one lonely Redhat box.
    Management put us through fifteen months of silliness trying to move from
    a 'proprietary' Sun platform to an 'industry standard' platform (read
    Dell/Linux). Like Xeon isn't proprietary? Yeah, right. I got this bridge
    to sell.... Anyhow. Much BS ensues. Hardware issues, field circus tales
    that rival the stuff in AFC and resulted in Banctec being banned from the
    building. Software issues. Boxen rooted, and rooted, and rooted. And yes,
    we were patching. Manglement finally figured out that this was costing a
    small fortune and ran screaming back to Sun. All that's left of the Great
    Penguin Project is that one RH box serving DNSBL for the mail swervers.

    Gee, this turned into a mini-rant. Sorry 'bout that. But if Mr Milunovich
    is reading, you are welcome to contact me and find out why we still buy
    Sun.

    -qds

    Quentin Guest

  5. #5

    Default Re: In The News: Sun Microsystems

    Quentin Smith wrote: 

    Are you sure that it wasn't a "legacy system"? Because, these days
    anything that is sold by someone other than the latest vendor to
    stop by the office is called a "legacy system".

    I suppose this would be an OK time to tell the story (again) of
    my experience with servers ordered from Dell with Linux pre-loaded:

    Had the servers for a few weeks. Time to get the modems working.
    Tried and tried; no dice. Spoke to Dell; found out they were
    pre-installed from the factory, so they should work. Did some
    digging, found out the problem.

    Aha, the reason they won't work is... THEY'RE WINMODEMS!

    What is wrong with this picture?
    A. They're winmodems -- they're *intrinsically* wrong.
    B. They're winmodems; they work only with Windows. Hence the name.
    C. It indicates Dell doesn't have logic to flag improper
    configurations at the time of sale.
    D. Winmodems shouldn't really be installed in a server-class machine,
    even if it IS running Windows! (See (c).)
    E. All of the above, and much, much more.

    Correct answer: E.

    Eventually, called Dell and they saw the light and agreed it'd never
    work. Did they offer to replace the modems with ones that did at least
    have the potential of one day working? Of course not! [1]

    I hope they've improved a bit since then. It has been a few
    years, so possibly they have.

    - Logan

    [1] The sad footnote to this is that I believe they did eventually
    issue a refund or something, and we went with external modems.
    So the powers that be asked for advice on what type of modems
    would work for our application (sending faxes). I did some
    research and said, "Just about anything EXCEPT a US Robotics
    Sportster." So the people in charge of the purchase went out
    and came back a couple hours later with... two USR Sportsters!
    And then the next few weeks I heard repeated cries of "Why won't
    you resolve this garbled fax issue?" and "Are you *sure* you
    installed the software right?"

    Ah, but this has turned into a mini-rant...

    Logan Guest

  6. #6

    Default Re: In The News: Sun Microsystems


    "Quentin Smith" <com> wrote: [/ref]
    [...] 

    Thats a good one, too.
     

    Thats the point. It is obvious that Milunovich does not understand what
    he is 'yzing'. Nor does he know how DEC self-destructed by
    deciding to move away from VMS. Not that other 'ysts' are better.

    Presumably, those few who are real experts in yzing
    companies would make zillions either investing their
    own money, or managing huge investment fonds.


    Thomas
    Thomas Guest

  7. #7

    Default Re: In The News: Sun Microsystems


    <rr.com> wrote: 
    > > [...] 
    > > [...]
    > >
    > > That Milunovich guy really pushes the term 'yst' to
    > > the next comedy level.[/ref]
    >
    > If only Sun could go private to avoid all that chatter.[/ref]

    Then the same ysts would 'yze' other companies
    whose business they do not understand either.

    Pastime for the bored ones: take the stock price
    of any large company, preferably one with a high
    volatility. Then dig up all the yst recommendations,
    and check whether following the ysts buy, hold,
    or sell recommendations would have been a good or a poor idea.



    Thomas
    Thomas Guest

  8. #8

    Default Re: In The News: Sun Microsystems

    Anthony Mandic <com> wrote: 
    [...] 

    So either these "lower-cost, less powerful" blades are "mission
    critical", this guy is trying to have a bit of an each-way bet, or he's
    completely clueless.

    I know where my money is...

    Scott.
    Scott Guest

  9. #9

    Default Re: In The News: Sun Microsystems

    Logan Shaw <rr.com> writes:
     
    >[/ref]
    <snip> 

    Just try to get MTBF figures from them. They don't even know what
    MTBF means, but if you wait long enough on hold, they'll find a manual
    from their hardware suppliers and read that to you.

    Gregm
    Greg Guest

  10. Moderated Post

    Default Re: In The News: Sun Microsystems

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    Rich Guest
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  11. #11

    Default Re: In The News: Sun Microsystems

    At Fri, 3 Oct 2003 10:46:54 +0200, "Thomas Dehn" <de> writes:
     

    Oh, that's easy. You can do it with Sun; just visit
    <http://finance./q/ud?s=SUNW>. Here's
    the general trend:

    ysts: Mixed upgrades and downgrades through most of 1998.
    Result: Stock shoots up.

    ysts: Many downgrades from December 1998 - June 1999.
    Result: Stock continues to climb.

    ysts: Almost all upgrades from July 1999 - October 2000.
    Result: Stock climbs in late 1999 to March 2000, then falls back,
    then to all-time high in August 2000, and downhill thereafter.

    ysts: Solid downgrades from December 2000 - April 2001.
    Result: Downgrades begin after huge stock losses. Losses continue.

    ysts: Mostly upgrades from April 2001 to February 2002.
    Result: Stock continues to fall.

    ysts: Almost all downgrades from June 2002 to present.
    Result: Stock has been fairly flat since June 2002.


    PS. Two major ysts (Bear Stearns and AG Edwards) downgraded Sun
    on September 30. Alas for their customers, Sun dropped from about
    $3.85 to about $3.30 just before the downgrades. It's been flat since
    those downgrades.
    Paul Guest

  12. Moderated Post

    Default Re: In The News: Sun Microsystems

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    Cypherpunk@nyc.rr.com Guest
    Moderated Post

  13. #13

    Default Re: In The News: Sun Microsystems

    rr.com the putz wrote: 
    >
    > If only Sun could go private to avoid all that chatter.[/ref]

    How about "youz" go private, Plugger?
     

    So you finally admit to not knowing anything. We all had that
    figured out about "youz" when you first came around here sniffing
    Gary's butt. So why don't "youz" go back where "youz" came from?

    -am 2003
    Anthony Guest

  14. #14

    Default Re: In The News: Sun Microsystems

    Anthony Mandic <com> wrote: 
    > >
    > > If only Sun could go private to avoid all that chatter.[/ref]
    >
    > How about "youz" go private, Plugger?[/ref]

    There's another 21 months to go, Plugee.

    N'yuck N'yuck N'yuck N'yuck
    Cypherpunk@nyc.rr.com Guest

  15. #15

    Default Re: In The News: Sun Microsystems

    "Anthony Mandic" <com> schrieb im Newsbeitrag
    news:3f7ca740$0$6412$astraweb.com... 

    Yeah, that's lovely. A serb giving financial advice, and among other things
    the "bow down to your competition" speech. And that actually gets printed as
    a serious statement from Meryll Lynch. Unbelievable.

    Perhaps people should be reminded of Enron-like financial blunders by Meryll
    Lynch. I wonder who's next to get "lynched".


    UNIX Guest

  16. #16

    Default Re: In The News: Sun Microsystems

    <rr.com> schrieb im Newsbeitrag
    news:vpsfb.44675$nyc.rr.com...
     

    "Engineer: Oracle support.

    DBA: Yes, hello. I have a problem xyz with my Oracle on Linux, it does abc.

    Engineer: Ah, yes, that's a doented problem, on Solaris, you need to
    apply the patch 12345-01 and then get the latest patch for it from Oracle,
    and you'll be all set.

    DBA: No, no, I guess you didn't hear me right. I'm running your product on
    Linux.

    Engineer: Yeah, well, the patch for Linux isn't out yet.

    DBA: When will it be out?

    Engineer: Who knows? Solaris is the first on the support priority list, all
    the other platforms follow later after that.

    DBA: WHAT??? But we've just forked out over a million dollars for your
    software!!!

    Engineer: I'm sorry, but you know how it goes... we tend to the platform
    that most customers run Oracle on first, then everything else... sorry."

    [This was a real story; just replace all instances of "Linux" with "HP-UX"]

    Oh yes... and good luck switching from Sun to HP.


    UNIX Guest

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