Takeover helps Sun narrow losses

A recent partnership with Google has given Sun much to smile about

US computer firm Sun Microsystems has narrowed its first quarter losses, helped by its takeover of data storage equipment maker Storage Technology.

Releasing its results for the three months until 25 September, its net loss was $123m (£70m), compared to $133m for the same period a year ago.

Revenue rose to $2.73bn from $2.63bn, slightly below market expectations.

Sun recently announced a partnership with search engine giant Google, that will see them share certain products.

Technology recession

Among other things, Google will start to promote Sun's OpenOffice software, while people downloading Sun's Java program will be offered Google's toolbar.

Sun has been one of the last major US software firms to fully bounce back from the technology sector recession that began in late 2000, the bursting of the so-called "dot-com bubble".

Some commentators say Sun still has work to do.

"I think it's still a little early to say they're entirely out of the woods," said Roger Kay, a computer sector analyst at market research firm Endpoint Technology Associates.