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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 93.79+1.7%Jan 9 3:59 PM EST

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To: SuperSonics who wrote (1262)4/30/1997 12:51:00 PM
From: John M. Zulauf   of 14451
 
The difference between the optimist and pessimist is one word -- YET!

Paul> It never happened!!!

The Optimist> It never happened yet!!!

I'm well underwater, but still an optimist.

Reasons for optimism:

Here's one, the Octane shipped late. That's optimistic? Yup, you see just before the original shipment date, a small flaw was found in a part which functioned correctly in ALL prior systems, and SGI models. Instead of shoving these out the door for this quarter's numbers, sacrificing the future, by having to recall the part later, and hacking off the customers. SGI mgmnt chose to respin the flawed part ASAP, get as many Octanes (sans 1 part) ready to go awaiting the fixed part, and once the new part came in THEN and ONLY THEN ship the revenue Octanes. This took guts and committment. The stockmarket has (predictably) punished (short-term) the long-sighted decision.

These are the kind of choices that pay off long term, but that catch a lot of flack short term. But they speak well of SGI mgmnt and go to SGI core values.

Does this mean SGI will have a great next quarter, I don't know. I have the sense though, that the right kind of decisions are being made, and that problems are being addressed. So I'm optimistic.

Speaking for himself, and not his employer (Alias|Wavefront)

John M. Zulauf
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