RESEARCH ALERT - Merrill ups SGI EPS/target
(via the SGI yahoo board)
by: run2daylight (M/Wisconsin)
13009 of 13010
Friday January 29, 10:54 am Eastern Time
RESEARCH ALERT - Merrill ups SGI EPS/target
NEW YORK, Jan 29 (Reuters) - Merrill Lynch computer systems analyst
Steve Milunovich
said Friday he boosted his target price on Silicon Graphics Inc. stock to $23
from $18 and
raised his earnings estimate for the company's fiscal year ending in June 2000.
-- Milunovich said he was raising his earnings estimate to $0.80 per share from
$0.60 after SGI management told analysts
that revenue should grow more than 20 percent while it drops its share count
aggressively.
-- ''We view the likelihood of near-term success as good and the stock as a
trade,'' the Merrill analyst wrote in a research
note.
-- Among the highlights at SGI's meeting with Wall Street analysts were plans to
offer multi-processor servers using
popular Windows NT and Linux operating systems, just as it has introduced NT
workstations. SGI is targeting a market in
2000 it believes is worth $74 billion, the analyst said.
-- The company also moved to reassure users of its proprietary MIPS
microprocessor-based Origin server systems by
extending the product development roadmap for MIPS-based servers out
through 2002, Milunovich said.
-- In a statement released late Thursday, SGI described its dual strategy for
expanding its use of high-volume Intel
processors and industry standard components, as well as its traditional reliance
on MIPS microprocessors.
-- SGI also said it remained committed to making IRIX, its 64-bit UNIX-based
software system, the premier operating
system for high-end server systems. IRIX is used in compute-intensive scientific
research projects. SGI declined to provide
timing or specific details on future products, the statement said.
-- Specifically, the company said it planned to extend its MIPS microprocessor
line to deliver processor speeds of 600 and
800 megahertz, with a schedule for a faster microprocessor every six to nine
months.
-- ''Our customers have told us they want standards-based systems. This
means they want Windows NT, UNIX and Linux,''
John Vrolyk, senior vice president, Computer Systems Business Unit, said in the
statement.
Posted: Jan 29 1999 11:31AM EST as a reply to: Msg 13001 by Zebby1999
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