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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 93.78+1.7%Jan 9 9:30 AM EST
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To: larry larsen who wrote (6355)8/10/1999 11:06:00 AM
From: Don Green  Read Replies (1) of 14451
 
Silicon Graphics To Restructure
MOUNTAIN VIEW, Calif. (Reuters) - Silicon Graphics Inc. (NYSE:SGI - news), struggling to boost its computer workstation business, Tuesday unveiled its second restructuring in less than a year, with plans to spin off its media operations, shed up to 1,500 jobs and form an alliance with the Japanese company NEC Corp. (Nasdaq:NIPNY - news)

SGI also said it had formed separate business units to manage its lines of Cray supercomputers, Visual Workstations and broadband Internet systems and was pursuing alliances with other companies to handle development and distribution of certain of its product lines.

SGI said it plans to spin off its MediaBase media streaming application, engineering team and technology -- a business that makes software and technology for transmitting audio and video over the Internet -- to a newly formed company with venture capital backing. SGI will hold a ''significant'' minority stake in the new company.

It said it would form an alliance with NEC to market SGI's high-end systems in the Japanese market.

SGI's global workforce will be cut by 1,000 to 1,500 employees as a result of the moves, with additional reductions expected as a result of the transfer of businesses to SGI partners. The company's total employment was not immediately available.

Analysts have voiced doubts about SGI's ability to parlay its substantial resources into successful products. They say SGI has serious problems in its key areas and has long been unable to demonstrate large commercial demand for its ultra-high-performance computers.
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