Computer manufacturer Sun Microsystems Inc. will restate its 2003 and 2004 financial results after identifying errors related to the accounting for a number of tax-related issues.

In a filing with the Securities and Exchange Commission, the company said that the issues started with deferred taxes taken in foreign jurisdictions, eventually spilling over into corrections for state and foreign tax returns and withholding taxes.

The changes will reduce the company's benefit from income taxes for the 2005 fiscal year by $45 million, and decrease the provision for income taxes in 2003 by $45 million. The company also trimmed its 2003 losses slightly, to $3.38 billion, from $3.43 billion.

Sun said in the filing that the errors were identified through the internal controls the company has in place for its financial reporting. "Although the adjustments were small given the size of our company, they do provide additional clarity for our shareholders," said chief financial officer and executive vice president for corporate resources Steve McGowan, in a statement.

The company said that the errors and revisions will not impact its 2004 financial statements and the adjustments have no impact on Sun's revenue, gross margin, pretax income and operating cash flows for the restated periods.

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