For the first quarter ended 28 September, Sun says it expects to report sales in the range of £1.73bn to £1.79bn, compared with £1.89bn seen in the first quarter last year.
Sun anticipates a net loss per share in the range of £0.15 and £0.21, and that is before a planned asset goodwill write-off associated with the £2.35bn takeover of StorageTek three years ago.
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Net losses per share include a restructuring charge of about £35m linked to the restructuring announced on 1 August.
On the write-off, Sun said, "Based on a combination of factors, including the current economic environment, Sun's operating results, and a sustained decline in Sun's market valuation, the company has concluded that it is likely that the fair value of one or more of its reporting units [StorageTek] has been reduced below its carrying value.
"As a result, Sun is currently conducting an interim goodwill impairment analysis to determine the required amount of the non-cash impairment charge, if any. As of 28 September, prior to the impact of this potential non-cash impairment charge, Sun's total goodwill balance was £1.88bn, of which £1.06bn relates to reporting units that may be impaired."
Jonathan Schwartz, under seige CEO of Sun Microsystems, still managed to find a silver lining amid the gloom. He said, "Sun and its customers are seeing the impact of a slowing economy. We believe we are positioned to offer the kinds of products that can radically help customers reduce expenditures for their infrastructure, from open storage and Solaris-based Chip Multi-Threading systems to offering the most eco-efficient systems in the market."
A familiar mantra from Schwartz, which may not be enough to preserve Sun's reputation in the market. The first quarter results will be posted on 30 October.
