U.S. sales take toll on Sun Micro

Sun Microsystems Inc. reported an unexpected third-quarter net loss Thursday and announced plans to cut 1,500 to 2,500 jobs after slow sales in the U.S. dragged down overseas gains. The shares fell 8.1%.

The net loss was $34 million, or 4 cents a share, compared with profit of $67 million, or 7 cents, a year earlier, Santa Clara, Calif.-based Sun said. Sales were little changed at $3.27 billion in the period that ended March 30, missing the $3.38-billion average estimate.

Excluding costs such as stock-based compensation and acquisition expenses, profit was 18 cents a share. Analysts in a Bloomberg survey had estimated a profit of 19 cents.

While Sun grew in parts of Asia and Europe last quarter, U.S. sales posed “significant challenges,” Chief Executive Jonathan Schwartz said. He has expanded Sun’s software business in a bid to spur sales of its server computers, which lost market share last year.

Sun fell $2.47 to $13.86 in extended trading after closing at $16.33 before the earnings news. Shares have dropped 9.9% this year.

First American profit sinks 65%

First American Corp., the largest U.S. title insurer, said profit fell 65% in the first quarter as revenue declined.

Net income slumped to $29.3 million, or 32 cents a share, from $83.8 million, or 84 cents, a year earlier, the Santa Ana-based company said.

Revenue fell 22% to $1.66 billion as the insurer received fewer orders, and for a lower average price, in the title insurance business.

“The company continues to be impacted by the slowdown in real estate and mortgage activity,” Chief Executive Parker Kennedy said.

First American rose $3.50 to $36.30.

Apria net income falls less than 1%

Apria Healthcare Group Inc., the largest U.S. provider of home medical equipment, said profit fell less than 1% in the first full quarter since its acquisition of Coram Inc.

Lake Forest-based Apria reported first-quarter net income of $20.8 million, or 47 cents a share, compared with $20.9 million, or 47 cents, a year earlier, the company said. Profit fell short of the 50-cent-a-share estimate of analysts surveyed by Bloomberg.

Revenue rose 35% to $528 million, the company said.

Although Apria didn’t change its full-year forecast, the company said it might have to do so because Medicare reimbursement for respiratory drugs was expected to fall $12 million short of its previous estimate. Apria has forecast revenue growth of 4.5% to 5.5% and per-share earnings of $2.04 to $2.14.

Apria’s purchase of Coram for $350 million closed in December. The purchase, to expand Apria’s home-infusion and specialty pharmaceutical services, was expected to be “neutral to earnings in 2008,” the company said.

Apria rose 49 cents to $18.11.

Callaway expects lower earnings

Callaway Golf Co. posted quarterly earnings that beat Wall Street estimates and said it now expected full-year profit at the low end of its forecast.

The Carlsbad-based company, which has been cutting costs and making its operations more efficient, said first-quarter net income grew to $39.7 million, or 61 cents a share, from $32.8 million, or 48 cents, a year earlier.

The results included a 1-cent-a-share charge related to margin improvement efforts. Analysts had been looking for 60 cents a share, according to Reuters Estimates.

Revenue was $366.5 million, up nearly 10%.

Among other things, Callaway said revenue got a boost from foreign currency exchange rates and sales of fairway wood clubs related to its FT and FT-i product launches.

The company had said it saw full-year earnings, excluding items, of $1.08 to $1.18 a share. It now expects earnings at the lower end of that range because of economic uncertainty and competition.

Callaway shares rose 23 cents to $13.97, then fell 2 cents in after-hours trading.

From Times Staff and Wire Reports