The Santa Clara technology major, Sun Microsystems, said on Monday that it expects to report a net loss - of 25 to 35 cents a share - in its fiscal first quarter that ended September 28. The reason cited for the loss was the economic crunch that has hit some of its customers especially hard.

The company has recorded a hefty goodwill impairment charge and a restructuring charge amid a difficult economic environment. While the details will not be released until October 30, Sun predicts revenue between $2.95 billion to $3.05 billion, compared with $3.22 billion in the same quarter last year.

In August, Sun said it expected a slight sales decline and indicated it likely wouldn’t turn a profit. In a statement, the company’s Chief Executive, Jonathan Schwartz, said: “Sun and its customers are seeing the impact of a slowing economy.”

However, Schwartz also added that the company - the world’s fourth-largest server maker - is in good position for the long run, because it has products, including open-source software and more efficient servers that help its business customers cut their operating costs.

Although Sun’s stock price has declined sharply in recent months, it has shown some improvement in the last week. It closed at $5.78 Monday, up 3.6 percent for the day, but shed 53 cents in after-hours trading after the preliminary earnings release.

The company statement said that it may have to recalculate the reported value of one or more business units, based on its recent earnings, its declining share price and the current economy. Sun said it may report a ‘noncash charge’ for impairment of goodwill value, with the largest portion involving its StorageTek division – the biggest ‘recent’ acquisition by Sun, which it bought in 2005, for $4.1 billion.