SAN JOSE, Calif. — Network computing giant Sun Microsystems Inc. said Wednesday that it probably will lose money this quarter because demand for its products in Europe and Japan has been softer than expected.

        Sun said last month it needed $3.7 billion in revenue in its fiscal first quarter to break even. But hitting that mark “would be a real stretch,” chief financial officer Michael Lehman told financial analysts. “It will take a very large month of September in terms of demand for us to hit the break-even point,” he said.

        Analysts were expecting Sun to earn 2 cents a share this quarter, excluding one-time charges, on revenue of $3.8 billion, according to Thomson Financial/First Call. In the comparable period last year, Sun's revenue was $5 billion.

        Sun shares fell 13 cents to $13.43 in heavy trading on the Nasdaq Stock Market before the update. In after-hours trading, the stock was down to $12.60.

        As a leading maker of servers, network software and high-end workstations, Palo Alto-based Sun has been hit hard by the high-tech slump.

        Still, Mr. Lehman said he was confident, pointing to the company's cash reserves of $6 billion.

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