Sun Microsystems Sales Slip

Shares of Sun Microsystems headed lower Friday morning after the company reported second quarter sales that were a little lower than analysts expected.

The company (SUNW) said revenue increased 14 percent to $2.78 billion. That lagged the 16 percent growth projection from Goldman Sachs analyst Laura Conigliaro.

The company said in a release that it earned $273.2 million, or 67 cents per share. That was a penny ahead of the consensus estimate of analysts surveyed by First Call.

The company also announced a 2-for-1 stock split. A shareholder vote on the split is scheduled for March 17, and would give Sun 770 million shares outstanding.

Sun shares have nearly doubled over the past three months, but have weakened in recent sessions.

The stock fell 2 1/8 to 96 1/8 in heavy trading on Friday morning. The decline follows a 7 percent slide in the previous session ahead of the release.

Written By Brenon Daly, CBS MarketWatch