Sun Restates Financial Results

Computer maker Sun Microsystems Inc. has restated its financial results dating back to 2003 after it identified errors related to tax accounting.

In a regulatory disclosure Tuesday, the Santa Clara, Calif.-based company said it had reduced the 2005 income tax benefit by $45 million and decreased the provision for taxes in fiscal 2003 by $45 million.

The adjustments have no effect on the firm’s revenue, gross margin, pretax income and operating cash flows for the restated periods, Sun spokeswoman Stephanie Von Allmen said.

The change increases Sun’s fiscal 2005 loss to $107 million, or 3 cents a share, compared with its previously reported loss of $62 million, or 2 cents a share.

For 2003, the revised loss is $3.38 billion, or $1.06 a share -- slightly smaller than originally reported.

The errors related to the accounting for deferred taxes in certain foreign jurisdictions, as well as other corrections related to state and foreign tax returns and withholding taxes.

The error was discovered within Sun, and the company did not disclose any legal action or investigation in the filing with the Securities and Exchange Commission.