Server giant Sun Microsystems has posted second-quarter losses of $431m after a 39 per cent drop in sales.
A year earlier the firm made a profit of $423m. Sun's shares have dropped 62 per cent in the last year alone.
Sales for the quarter ended 30 December slipped from $5.12bn to $3.11bn in the face of intense competition and a smaller customer base. The company said that it expects to return to profitability in the fourth quarter, which ends in June.
Chief financial officer Michael Lehman said: "Compared with Sun's first fiscal quarter, bookings and revenue in the second fiscal quarter are up sequentially and inventory reductions are in excess of $200m.
"We generated cash in the quarter on an operating basis, even with the payments we've made on our restructuring, and Sun's cash and liquid marketable investment position remains strong at approximately $6bn.
"We are showing signs of progress. Despite economic uncertainties, Sun is still investing in product development and core competencies to promote the long-term growth of the company."
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And becomes the team's executive chairman to boot