[From today's Globe and Mail]
Facing a future in which it could have ended up as a niche player hoarding a technology no one else wanted to buy, Sun Microsystems Inc. surrendered to its long-time rival Microsoft Corp. last week, to the delight of its own investors.
Before the markets opened on Friday, Santa Clara, Calif.-based Sun reported preliminary results for the quarter that ended March 28, said it would lay off 3,300 employees and agreed to use Microsoft's server technology in its products.
Sun's stock quickly took off, finishing the day 87 cents (U.S.) or 21 per cent higher.
Investors, though, were less enthusiastic yesterday, sending Sun's stock down 12 cents or 2.4 per cent on the Nasdaq Stock Market to close at $4.94.
"We are encouraged that Sun is beginning to execute on its restructuring plan," said Steven Milunovich, an analyst at Merrill Lynch & Co. Inc. of New York. "[But] Sun's first-quarter preannouncement shows operating performance is deteriorating and the cost structure is still unsustainable."... [Read the full story]