Summary:
     - quarterly revenue of $2.63 billion, down 1 percent from $2.65 billion in the previous third quarter;
     - GAAP operating loss of $9 million, or $0.00 per share;
     - Non-GAAP operating net loss of $61 million, or 2 cents per share.

Sun Microsystems Inc. on Thursday April 14th has reported financial results that again did not meet the expectations of the investors. The company reported a $61 million loss for its third fiscal 2005 quarter.

The loss was calculated on a non-GAAP basis, which excludes a charge of $45 million for restructuring, a $2 million gain on equity investments, $54 million in additional settlement income from Microsoft (recorded in other income), a and $41 million in tax benefits.

However, the result of this third fiscal quarter, according to Chairman and Chief Executive Scott McNealy, "is a huge move forward from the loss we experienced a year ago".  Sun posted a loss of $760 million in the previous third quarter.

"We've made over a $1 billion improvement in Net Income on a year to date three quarter comparison," McNealy continued, "Revenue was stable for the first three quarters of fiscal 2005 as compared with the same period in fiscal 2004, while margins have improved and we've made tremendous strides in reducing our R&D and SG&A by over $400 million dollars."

Revenues for the third quarter were $2.625 billion, a decrease of 1.0 percent as compared with $2.651 billion for the third quarter of fiscal 2004. Total gross margin as a percent of revenues was 41.3 percent, an increase of 1.0 percentage points as compared with the third quarter of fiscal 2004.