Shares of Sun Micro Fall 9.4% on Analyst Note

Shares of network computer maker Sun Microsystems Inc. slid for a second day Tuesday, leading a broad decline in technology stocks, after another Wall Street analyst cautioned clients to tone down their expectations for the company in the quarter just ended.

Steven Milunovich of Merrill Lynch, in a note to clients, wrote that he expected an “uninspiring quarter” from Santa Clara, Calif.-based Sun.

“We don’t expect a big top line [revenue] miss though a little softness would not surprise us,” he wrote. He maintained his “neutral” rating on the stock.

Sun stock dropped 48 cents, or 9.4%, to $4.63 on Nasdaq. On Monday it fell 5.2%.

Analysts expect Sun to report fiscal second-quarter revenue of $2.94 billion and a profit before one-time items of 1 cent a share, according to data tracker Reuters Estimates.

On Monday, Sanford Bernstein analyst Toni Sacconaghi cut his rating on shares of Sun to “underperform” from “market-perform,” arguing that the company wasn’t seeing an acceleration in its business.