Friday, June 03, 2005

The New York Times > Technology > Sun Bets Nearly Half Its Cash to Buy Storage Technology

The New York Times > Technology > Sun Bets Nearly Half Its Cash to Buy Storage Technology: "Sun, based in Santa Clara, Calif., has been struggling to resume growth after a steep decline that started with the dot-com collapse. Its revenue peaked at $18.25 billion in 2001, but dwindled to $11.18 billion last year. Sun has had financial losses in each of the last three years.
At the same time, however, it has maintained a significant cash reserve, and on Thursday it used a large portion of its holdings in an attempt to create a more effective competitor against companies like I.B.M., Hewlett-Packard and EMC, which sell large data storage systems to corporate customers.
Sun retains about $4.5 billion in cash and investments after the acquisition, which was valued at about $3 billion net in light of Storage Technology's cash balance."
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