Sun Microsystems reported a second-quarter loss of $99 million or three cents per share mainly due to a $511 million restructuring charge and cut backs in technology spending by businesses.
Still, the figure exceeded the First Call/Thomson Financial consensus which was for a loss per share of four cents.
The company, which employs over 200 people at its strategic software development centre in Dublin, also blamed a $39 million charge for failed equity portfolio investments for the loss.
Revenues fell to $3.180 billion in the quarter, down 39 per cent from $5.115 billion a year earlier.
Looking ahead, Sun Microsystems chief financial officer Mr Michael Lehman said: "We are showing signs of progress. Despite economic uncertainties, Sun still is investing in product development and core competencies to promote the long-term growth of the company."