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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 87.80-2.5%3:59 PM EST

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To: Ms. Baby Boomer who wrote (8826)4/25/2001 11:17:17 AM
From: Thomas A Watson  Read Replies (1) of 14451
 
>>>><What impact will 20% reduction have?>
The question goes to morale of remaining employees. The next is to holes in service, production and sales. Sgi's customers are in general very sophisticated. Is there a FUD of long term commitment and viability.

It'a a tough call.

I's also see SGI 15% to Csco 18% as deeper for SGI. Csco most likely in a sea of cash was somewhat bloated. SGI has been fighting lean.

>>>The internet isn't going away, it's transitioning...we need the bandwidth....

My concern is the current technology delay may give bigger players the time to create required technology and their size can allow for more competitive pricing. Can SGI in the current cash flow situation keep advancing processor and system technology to maintain a lead.

tom watson tosiwmee
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