Sun losses mount as sales fall again

Losses have widened at network computer maker Sun Microsystems as it reported a drop in sales for the 10th quarter in a row.

Sun posted a net loss of $286m (£171m; 246.5 euros), or 9 cents per share, for the three months to the end of September.

That compares with a loss of $111m, or 4 cents per share a year earlier.

Sales fell 7.7% to $2.54bn from $2.75bn.

The dismal results were in line with Sun's late-September profit warning.

But Sun's shares slipped 2% in after-hours trade after it said price competition in the enterprise computing market remained intense and showed few signs of easing.

The recession in the computer industry has hit Sun harder than rivals, who have been able to produce cheaper computers with industry-standard components.

The California-based company has struggled to compete with rivals Hewlett-Packard and IBM in the high-end server market and number one PC maker Dell at the low end.

But it has more than $5.5bn in cash and short-term investments, potentially giving it breathing room as it waits for overall demand to pick up.