Sun Microsystems Posts Loss Despite Sales Gains

Server and software maker Sun Microsystems Inc. posted a larger-than-expected loss in its fiscal second quarter but saw revenue grow as a result of recent acquisitions.

For the three months ended Dec. 25, the company lost $223 million, or 7 cents a share, contrasted with a profit of $4 million, or break-even per share, in the same period of its previous fiscal year.

Sales increased 17% to $3.34 billion from $2.84 billion, driven primarily by the company’s acquisition last year of tape-drive maker Storage Technology Corp. and SeeBeyond Corp., a business software integration firm.

Analysts were expecting Sun to lose a penny a share on sales of $3.49 billion.

Shares of Santa Clara-based Sun fell 2 cents to $4.37. In the extended session, they lost an additional 10 cents.