The headlong rush by Sun Microsystems Inc to license the Sparc processor to all comers looks set to receive its first major setback this month, with the expected announcement that Sparc International member Phoenix Technologies Ltd, Norwood, Massachusetts, will discontinue its Sparc development efforts and run down its Unix activities, including the licensing of the SunOS operating system, which it took on in February. Although no one at Phoenix would officially confirm this, spokesman George Adams said that an announcement would be made within the next few weeks; the company blamed slow take-up of its products in the Unix market for its disappointing performance in the March-to-June quarter. Alongside Interactive Systems Corp, Phoenix was one of two third party software companies that agreed to become second sources for software development environments for the Sparc chip, such as the SunOS operating system, debuggers, compilers, networking and windowing software. In March Phoenix was claiming that it was working with at least half a dozen hardware companies such as Mission Cyrius, providing its Advanced ROM BIOS and software for Sparc-based Micro Channel machines, and in July it struck a deal with Texas Instruments to provide chip and BIOS Sparc kits for hardware developers. The change in direction comes on the back of poor financial results this year from the 10-year-old company. One result of the Phoenix move could be to increase the share of the Sparc business for Interactive Systems Corp. Sparc International confirmed that Phoenix’s backward move had been anticipated, but had no comment on any effect it might have on the Sparc movement in general.