By Sean Cronin
GITEX: Computer giant's chairman says world to need more computers not less.
Sun Microsystems chairman Scott McNealysaid on Sunday theworld’s fourth-largest computer-server makeris an "awesome" investment opportunity as technology shares are buffeted by the worst financial crisis in 80 years.“If I were sitting on a pile of cash there are some really interesting equity investments. Sun is an awesome market opportunity, we’re selling at pretty low multiple to sales," McNealy said in an interview on the sidelines of the Gitex technology exhibition.
"The world is going to need more computers and servers not less going forward.”
Shares in Sun, based in Santa Clara, California, have fallen 69 percent this year as stocks are hammered by the global financial crisis.
Sun is targeting emerging markets such as the Arabian Gulf amid a global slump that is hurting the computer industry. The company formed a new sales group this year to drive growth in its emerging markets business.
International sales account for about two thirds of the company’s turnover. It hopes to expand its business beyond servers, which run websites and corporate networks, after losing market share in 2007.
Sun reported a 73 percent decline fourth-quarter profit in July as customers in Asia and the US spent less on new servers. US sales, which accounted for more than a third of revenue, fell 9.4 percent.
The company has been cutting its costs in an effort to cope with a global slowdown which is hitting sales in many of its markets.
Sun said in May it would trim 2,500 more workers, or about 7 percent of its staff.
What a surprise - a CEO says his company is good. Hold the front page. It's almost as newsworthy as all the property developers saying that Dubai's property market won't stop growing. And he probably is sitting on a pile of cash, so he could buy SUN shares if he really thought they were undervalued.