Sun Microsystems has warned of a larger than expected loss for its current first quarter and says it will restate its previously reported fourth-quarter results to show a loss.
The group says it will recognise a $1.05 billion non-cash charge in the fourth quarter to increase a valuation allowance for its net deferred tax assets.
This has resulted in a revised net loss of $1.04 billion for the fourth quarter, which amounts to a net loss per share of $0.32.
Although the books for the first quarter have not yet been closed, Sun expects a loss of $0.07 to $0.10 a share, including a tax provision of about $34 million or $0.01 per share.
Analysts had been expecting a loss of about $0.02 a share.
The group describes the current quarter as "a particularly difficult quarter for the company due in part to intense market and competitive dynamics".
It says the fiscal 2003 financial statements are complete and ready to submit to the US's Securities and Exchange Commission.
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