SGI Announces Fiscal Year 2001 Third-Quarter Results
Story Filed: Friday, April 20, 2001 7:30 AM EST
Company Reports Sequential Revenue Growth and Improved Operating Performance
MOUNTAIN VIEW, Calif., April 20 /PRNewswire Interactive News Release/ -- SGI (NYSE: SGI) today announced financial results for its third quarter of fiscal 2001 ended March 31, 2001. For the quarter, the company posted revenue of $510 million, compared with $487 million in the quarter ended December 31, 2000, which represents a 5% increase. The company also reported a net operating loss of $47 million for the quarter, excluding charges, compared with a net operating loss of $93 million in the previous quarter.
In addition, the company reported a net loss of $141 million, which included a non-cash write-off of $83 million for a venture investment.
The results marked the company's third consecutive quarter of sequential revenue growth and improved operating performance. "SGI's mission to be the world leader in high performance computing and visualization solutions for technical and creative users is resonating with our customers," said Bob Bishop, Chairman and CEO. "However, the economic uncertainty is clearly having a noticeable impact on the timing of our customers' technology spending," Bishop said.
"While it's difficult to predict the scope and duration of this economic uncertainty, we believe it is prudent to take appropriate action," said Bishop. "Consequently, we are committing to an operating model that will enable us to break-even at the current revenue level, as we enter the next fiscal year."
To achieve this operating model, the company announced plans to eliminate about 1,000 regular, temporary and contractor positions, or about 15% of its global workforce, in the June 2001 quarter. These actions will result in a restructuring charge in the June quarter of approximately $60 -- $80 million. The company expects to realize operating expense savings of 20% from these actions.
The company's backlog at March 31, 2001 was $276 million.
As of March 31, 2001, cash, cash equivalents, marketable and short-term restricted investments were $218 million compared with $268 million on December 31, 2000.
The Company will conduct a conference call today at 8:30 a.m. EDT to provide additional details. The dial-in number is: 888-208-1824 and the webcast site is www.sgi.com or www.streetfusion.com. An audio replay of this call will be available after 11:30 EDT today at 888-203-1112 (passcode: 640377). All links to the archived webcast and audio replay are available through the Company's web site at www.sgi.com/company--info/investors. |
