Don, I think you left probably the most important part of the posting behind.
here it is:
Silicon Graphics faces challenges, regroups again
Reuters
By Andrea Orr
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For much of the past year, Silicon Graphics has been trying to shift into lower-end markets, largely with the introduction in January of a new line of sub-$6,000 machines that perform many of the same functions as older models that sold for $25,000. To date, the new workstations have not made the splash the company had hoped for.
Silicon Graphics's recently reported results for the fourth quarter ended June 30, however, showed better performance from higher-end products that had been expected to suffer from a dramatic drop in demand.
Its Unix workstation and Origin server businesses exceeded expectations, helping the company report operating earnings of 12 cents per share, rather than the five cent loss analysts had been forecasting.
But the company still cannot ride on those businesses, which by most accounts are seen shrinking over time, analysts said.
``You have to ask how much of their business had come from high-performance computing, and is it sustainable?' said Salomon's Jones. ``I don't think the answer is yes.' |
