SAN FRANCISCO, Feb 6 (Reuters) - Sun Microsystems Inc.'s chief financial officer said on Tuesday that demand for the company's products and services in January had been similar to business conditions in December and that the U.S. market in particular had been weaker than expected.
Michael Lehman, executive vice president and chief financial officer at network computer maker Sun, also told analysts at a meeting that the company was not losing business to competitors for its high-end servers and other products.
"January looks a lot like December, no surprise...Demand in the U.S. wasn't as exciting as we hoped. Demand outside the U.S. is still pretty healthy. That is what everybody is saying," he said.
"We are not losing business out there," he said.
Lehman said Sun is targeting between 20 and 35 percent annual growth in revenue for the next two to three years.
"That means we will double this business again in the next three plus years," he said.
"Over that timeframe, we expect to grow the operating earnings at a rate that is faster than the revenue growth," he said.
Sun Chief Operating Officer Ed Zander also countered continued skepticism that the company would launch soon its midrange servers based on its new UltraSPARC III microchip, and high-end servers after that.
"We are on schedule," he told the conference, repeating that he would not name a release date for competitive reasons and promising to make announcements this quarter, and ship in volume next quarter.
Sun has already rolled out low-end machines based on the new chip.
Sun shares ticked down 1/16 during the day to $27-13/16, in a mixed market.
Michael Lehman, executive vice president and chief financial officer at network computer maker Sun, also told analysts at a meeting that the company was not losing business to competitors for its high-end servers and other products.
"January looks a lot like December, no surprise...Demand in the U.S. wasn't as exciting as we hoped. Demand outside the U.S. is still pretty healthy. That is what everybody is saying," he said.
"We are not losing business out there," he said.
Lehman said Sun is targeting between 20 and 35 percent annual growth in revenue for the next two to three years.
"That means we will double this business again in the next three plus years," he said.
"Over that timeframe, we expect to grow the operating earnings at a rate that is faster than the revenue growth," he said.
Sun Chief Operating Officer Ed Zander also countered continued skepticism that the company would launch soon its midrange servers based on its new UltraSPARC III microchip, and high-end servers after that.
"We are on schedule," he told the conference, repeating that he would not name a release date for competitive reasons and promising to make announcements this quarter, and ship in volume next quarter.
Sun has already rolled out low-end machines based on the new chip.
Sun shares ticked down 1/16 during the day to $27-13/16, in a mixed market.
