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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 90.20-0.7%3:59 PM EST

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To: Justin Banks who wrote (4358)2/10/1998 9:31:00 PM
From: Larry Brew  Read Replies (1) of 14451
 
All,I'm going to become SGI's CPRO 'chief public relations officer:-)

I missed posting some very good pr on SGI that deserved posted. I'm going to try and keep the thread updated from now on. I do believe SGI is taking it's problems head on, and will excel. Below is not one of the best, but good info:
INTERVIEW-Silicon sees NT PCs in 2nd half

February 9, 1998 07:15 AM

By Christina Toh-Pantin

KUALA LUMPUR, Feb 9 (Reuters) - U.S. high-end computer maker Silicon Graphics Inc SGI expects to roll out new personal computers based on the Windows NT operating system in the second half of 1998, a senior executive said on Monday.

Bob Bishop, chairman of the company's non-U.S. manufacturing division, told Reuters in an interview the introduction of the new products would be "in the second half of the calendar year."

He was speaking during a visit to the Malaysian capital Kuala Lumpur for a meeting of international advisers to the Multimedia Super Corridor, a testbed for multimedia applications.

Silicon Graphics, based in Mountain View, California, is known for powerful, large computers popular with engineers, designers and movie special-effects artists.

The company is now making a major business strategy shift into the high-powered, but less expensive personal computers (PCs) based on Microsoft Corp MSFT Windows NT software standard.

It has had a string of disappointing financial results in the past two years as its customers shifted to the Windows NT PCs.

Asked about the firm's outlook, Bishop said:

"The guidance we've given them (analysts) is that this fiscal year will be flat with respect to revenues, but we will achieve a break-even status this fiscal year. Next fiscal year, however, beginning July 1, we do expect to see our revenues and profits regaining considerable momentum."

In the second quarter ended December 31, 1997, Silicon Graphics reported a net loss of $31.48 million versus a loss of $12.80 million in the corresponding year-ago quarter.

The loss in the most recent second quarter included $53 million in restructuring and acquisition-related charges.

Bishop said Silicon Graphics did not intend to go head-to-head with much cheaper PCs being made by its rivals.

"It's not our intention to play in the sub-$1,000 market," he said. "But it is our intention to bring to the PC market a level of visualisation performances they have not had before."

Silicon Graphics is a key maker of Unix operating system products, which is under threat from Windows NT. But Bishop said Silicon was not turning its back on Unix products.

Windows NT computers mostly use Intel Corp INTC processors.

"We believe the world will be a hybrid of Unix and NT for some time to come," Bishop said. "Our intention is to be very focused and very strong in the technical market place, which is where we came from and where our roots are."

He said the company had no plans to do away with its MIPS microprocessor unit, even though the new business strategy involved Windows NT machines that operate on Intel Pentiums.

"MIPS becomes an ongoing product for our server product," he said.
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There was another good one about SGI and MSFT working on 3D. If
I stumble across it again, I'll post.
Larry
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