Rumors are flying that Sun CEO Scott McNealy might be shown the door for refusing to make layoffs:
This week, Sanford C. Bernstein analyst Toni Sacconaghi reported that Sun is examining every nook and cranny to cut costs, including research and development. "Anything but a massive restructuring of the workforce will prove disappointing, and that it remains unclear whether such a large reduction will occur under current management,'' he said.
Earnings come out on Monday and analyst expectations are -6 cents/share.
If this happens, we'll be very disappointed because McNealy conference calls are only slightly less entertaining than Patrick Byrne conference calls. Our summary of all conference calls, presentations, reports, ever: "McNealy seemed defensive."
(Below the jump: our list of McNealyisms from the last McNealy presentation we attended a few years ago. More McNealy quotes here.)
Might McNealy Step Down at Sun? [San Jose Merc]
Randomly: our list of McNealy quotes from a McNealy presentation at a Bear Stearns tech conference a few years ago ('01 or '02, we think):
He got stuck on the west coast and had to push his presentation back to later in the day. The Bear director that introduced him began with a powerpoint presentation of "10 Reasons Why McNealy Cancelled," which included "had to file another lawsuit against Microsoft, Jack suggested an interview with the Harvard Business Review, had a Linux class scheduled at the same time, stayed out late the night before partying with the state attorneys general," and the probably accurate, "You guys aren't buying my machines. You aren't buying my stock. Why the hell should I go?"
McNealy exhibited Standard McNealy Behavior, like:
The Opening Cheap Shot
Displaying a slide on demand for X product: "These are IDC numbers. We didn't make them up. This isn't Carly-math."
The Obligatory Swipe at Microsoft
Playing with nonfunctional A/V equipment: "Windows NT. Figures."
"Stupid Analysts" Commentary
"People keep asking me how we're going to compete with Dell. We don't compete with Dell. Dell's a grocery store for PCs. R&D's one percent of revenue; they're not a tech company. Their last big R&D innovation was a robot that puts the PC in the box. A robot! You think that's our competition?"
"Stupid Institutional Investors" Commentary
"Anything trading for 3 or 4X revenue is too expensive. You're not going to get a good return in 3 to 5 years. Yet people are still paying higher multiples. I mean, really, what the hell are you guys thinking?"