The good news for Sun Microsystems, Inc. (NASDAQ: JAVA) shareholders is that the vote for the Oracle Corporation (NASDAQ: ORCL) buyout is still set for this week.  The bad news is that Sun Microsystems is lowering quarterly guidance, so Oracle is getting less than what was forecast in the deal.

Sun now expects revenues for the fiscal fourth quarter (June-end) to be between $2.58 to $2.68 billion.  This is down from $3.780 billion a year ago and down under the $3.03 billion estimate from Thomson Reuters.

On a non-GAAP basis, Sun expects a net loss per share in the range of -$0.06 to -$0.16 EPS.  Thomson Reuters has estimates for non-GAAP as -$0.01 EPS.  On a GAAP net loss basis it sees -$0.24 to -$0.34) EPS.

Sun is still be acquired by Oracle.  The company will not be hosting an earnings conference call and will post formal results in its annual report due by August 31, 2009.

The special meeting of stockholders for the purpose of voting on the proposed acquisition of Sun by Oracle will take place at 10:00 a.m. Pacific Time on July 16, 2009.

While there is no formal change to the deal, Orcale did also issue a statement in conjunction with this warning.   “Oracle expects the Sun acquisition to be accretive to Oracle’s earnings by at least 15 cents on a non-GAAP basis in the first full year after closing and estimates that the acquired business will contribute over $1.5 billion to Oracle’s non-GAAP operating profit in that year, increasing to over $2 billion in the second year.”

The company also noted that the acquisition remains subject to stockholder and regulatory approvals, as well as other closing conditions.

While Sun Microsystems’ shares are lower, it is only by 0.1% at $9.15.  If there is any fear that this will materially change anything, it is not evident in the trading price nor in the volume.

JON C. OGG

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