Sun Microsystems' shares took a bath today, slipping nearly 23 per cent after the company surprised investors with its worst financial results in over a year. The market reaction sent Sun stock down to its lowest point in nearly six years.
Sun forecast flat revenue for the current quarter, and also announced plans to lay off between 1,500 and 2,500 workers to lower costs over the coming year.
"The U.S. economy presented Sun with significant challenges in the third quarter, masking our progress in developing nations and economies across the world," said Sun CEO Jonathan Schwartz. "We continue to invest in the future created by open alternatives to proprietary technologies, best exemplified by the acquisition of MySQL. The world is moving to open source innovation, and Sun continues to lead that revolution."
So far, Sun's taken on the open revolution has failed to impress investors.®