Sun Microsystems to cut 1,500 to 2,500 jobs

Sun Microsystems Inc. reported an unexpected third-quarter net loss Thursday and announced plans to cut 1,500 to 2,500 jobs after slow sales in the U.S. dragged down overseas gains. The shares fell 8.1%.

The net loss was $34 million, or 4 cents a share, compared with profit of $67 million, or 7 cents, a year earlier, Santa Clara, Calif.-based Sun said. Sales were little changed at $3.27 billion in the period that ended March 30, missing the $3.38-billion average estimate.

Excluding costs such as stock-based compensation and acquisition expenses, profit was 18 cents a share. Analysts in a Bloomberg survey had estimated a profit of 19 cents.

While Sun grew in parts of Asia and Europe last quarter, U.S. sales posed "significant challenges," Chief Executive Jonathan Schwartz said. He has expanded Sun's software business in a bid to spur sales of its server computers, which lost market share last year.

Sun fell $2.47 to $13.86 in extended trading after closing at $16.33 before the earnings news. Shares have dropped 9.9% this year.

First American profit sinks 65%

First American Corp., the largest U.S. title insurer, said profit fell 65% in the first quarter as revenue declined.

Net income slumped to $29.3 million, or 32 cents a share, from $83.8 million, or 84 cents, a year earlier, the Santa Ana-based company said.

Revenue fell 22% to $1.66 billion as the insurer received fewer orders, and for a lower average price, in the title insurance business.

"The company continues to be impacted by the slowdown in real estate and mortgage activity," Chief Executive Parker Kennedy said.

First American rose $3.50 to $36.30.

Apria net income falls less than 1%

Apria Healthcare Group Inc., the largest U.S. provider of home medical equipment, said profit fell less than 1% in the first full quarter since its acquisition of Coram Inc.

Lake Forest-based Apria reported first-quarter net income of $20.8 million, or 47 cents a share, compared with $20.9 million, or 47 cents, a year earlier, the company said. Profit fell short of the 50-cent-a-share estimate of analysts surveyed by Bloomberg.

Revenue rose 35% to $528 million, the company said.

Although Apria didn't change its full-year forecast, the company said it might have to do so because Medicare reimbursement for respiratory drugs was expected to fall $12 million short of its previous estimate. Apria has forecast revenue growth of 4.5% to 5.5% and per-share earnings of $2.04 to $2.14.