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Technology Stocks : Silicon Graphics
SGI 89.05-1.9%Jan 7 3:59 PM EST
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From: 2/26/1996 5:09:00 PM
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Wall St doesn't like this because it's afraid of earnings dilution at exactly the wrong time. People are still wondering whether SGI will get its profits back on track, so an expensive purchase of a company that's had trouble doesn't inspire confidence. Besides the financial aspects, there are strategic ones, namely, is it a viable growth strategy to swim upstream and build larger, more expensive computers at the same time that SGI products are being challenged from below by PCs? An SGI salesman in 1993 told me that their machines were "binary compatible" with Cray, and were therefore an inexpensive platform for prototyping. Can anyone tell us how well these machines work together?
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