(RTTNews) -  Friday, Sun Microsystems Inc. (JAVA: News ) a computer server and software maker, reported a narrower loss in its first quarter, helped primarily by lower expenses as a result of the company's cost saving measures. Sun Microsystems is being acquired by database giant Oracle (ORCL), in a deal that has been prolonged for quite some time, primarily due to the European Commission going for an in-depth investigation into the deal.

Sun Microsystems, known for its UltraSPARC processor-based servers, Solaris operating system and and Java technology, was founded in 1982 by Stanford University graduate students Vinod Khosla, Andy Bechtolsheim and Scott McNealy. The name Sun was derived from the initials of Stanford University Network.

The Santa Clara, California-based company reported a net loss for the first quarter of $120 million or $0.16 per share, compared to a loss of $1.68 billion or $2.24 per share in the year-ago quarter.

Net loss for the quarter included purchased in-process research and development, amortization of acquisition related intangibles, stock-based compensation, restructuring and related impairment of long-lived assets, impairment of goodwill, gain or loss on equity investments, settlement income and tax effect of non-GAAP adjustments.

Exuding items, the company's non-GAAP net income for the quarter was $15 million or $0.02 per share, compared to non-GAAP net loss of $62 million or $0.08 per share in the same quarter last year.

On average, seven analysts polled by Thomson Reuters expected the company to report a loss of $0.23 per share for the quarter. Analysts estimates typically exclude special items.
Total net revenues for the quarter decreased to $2.24 billion from $2.99 billion in the prior-year quarter. Eight analysts had a revenue consensus of $2.34 billion for the first quarter.

In the immediately preceding quarter, Sun reported a loss in the fourth quarter with a decline in revenues. Net loss for the fourth quarter of 2009 was $147 million or $0.20 per share, compared to a profit of $88 million or $0.11 per share in the prior-year quarter. Fourth-quarter non-GAAP net loss was $21 million or $0.03 per share, compared with a profit of $275 million or $0.35 per share a year earlier. Total net revenues for the quarter dropped 31% to $2.62 billion from $3.78 billion in the comparable period last year.

Among the competitors, software giant Microsoft Corp. (MSFT) reported a first-quarter profit that declined to $3.574 billion or $0.40 per share from last year, as the company deferred a portion of its revenue related to the Windows 7 Upgrade Option program. Revenues for the quarter were $12.92 billion, down from $15.06 billion in the prior year quarter.

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