Sun today reported preliminary results for the first quarter of fiscal year 2009, ending September 29, 2008.

Sun expects to report revenues for the first quarter of fiscal 2009 in the range of $2.950 to $3.050 billion, as compared with $3.219 billion for the first quarter of fiscal 2008. Total gross margin as a percent of revenues for the first quarter of fiscal 2009 is expected to be in the range of 39 to 41 percent.

Sun anticipates reporting GAAP net loss per share, before the impact of the potential goodwill impairment charge discussed below, for the first quarter of fiscal 2009 in the range of $(0.25) to $(0.35). GAAP net loss per share includes a restructuring charge of approximately $60 million pursuant to the restructuring announced on August 1, 2008. On a non-GAAP basis, Sun expects to report net loss per share in the range of $(0.02) to $(0.12). Non-GAAP net loss per share excludes amortization of acquisition-related intangibles, stock-based compensation, restructuring and related impairment of long-lived assets (including the potential goodwill impairment charge discussed below), net gain or loss on equity investments and the tax effect of these non-GAAP adjustments.

Based on a combination of factors, including the current economic environment, Sun’s operating results, and a sustained decline in Sun’s market valuation, the Company has concluded that it is likely that the fair value of one or more of its reporting units has been reduced below its carrying value. As a result, Sun is currently conducting an interim goodwill impairment analysis to determine the required amount of the non-cash impairment charge, if any. As of September 28, 2008, prior to the impact of this potential non-cash impairment charge, Sun’s total goodwill balance was $3.2 billion of which $1.8 billion relates to reporting units that may be impaired.

“Sun and its customers are seeing the impact of a slowing economy. We believe we are positioned to offer the kinds of products that can radically help customers reduce expenditures for their infrastructure from Open Storage to Solaris-based Chip Multi-Threading (CMT) systems to offering the most eco-efficient systems in the market,” said Jonathan Schwartz, CEO of Sun Microsystems.