In particular, some are disappointed with the company's storage business, which is not growing as fast as anticipated, and with its slow rollout of its new servers based on its UltraSparc III chip. The pace of the transition is clearly going to have to pick up for them to show some decent growth. Lehman gave a muted financial forecast for the company's fourth fiscal quarter. Sun expects its revenues to increase slightly from the third quarter, but Lehman would not quantify it any further. Fourth-quarter earnings will be flat or down slightly from the third quarter.
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