Sun Micro cuts Q1 loss on settlement
By Rex Crum, CBS.MarketWatch.com
Nov. 5, 2004
SAN FRANCISCO (CBS.MW) - Sun Microsystems said Friday that its first-quarter loss would be smaller than expected after it finalized the accounting for its $92 million patent settlement with Eastman Kodak.
Sun (SUNW: news, chart, profile) said in a regulatory filing that the accounting settlement would cut its loss by $27 million, or a penny a share, to $147 million, or 4 cents a share. During the same period a year ago, Sun lost $286 million, or 9 cents a share.
The case involved Kodak's (EK: news, chart, profile) belief that Sun's Java programming language infringed on certain Kodak patents. Kodak acquired the patents when it bought Wang Laboratories imaging software product line.
Kodak had originally sought $1 billion in damages. The two companies reached their settlement in October.
Sun shares rose 17 cents to close at $4.79 Friday.