SGI Reports Second Quarter Results; Company Generates a
Profit
MOUNTAIN VIEW, Calif., (January 22, 2002)-SGI (NYSE: SGI) today announced
results for its second fiscal quarter which ended December 28, 2001. Revenue for the
second quarter was $364 million. This represents 15% sequential growth in product
and service revenue from the first quarter.
Excluding restructuring and other special charges of $15 million, SGI generated an
operating profit of $0.4 million or $0.00 earnings per share, compared with a proforma
operating loss of $65 million or $0.36 earnings per share in the first quarter. SGI's
second quarter net income was $33 million or $0.17 earnings per share. This includes
a gain from the sale of a majority interest in our Japanese subsidiary.
"Not only did we reach our goal of breaking even in Q2, we beat consensus estimates.
I'm pleased that we demonstrated the stability and viability of our business. The
company executed well this quarter, even in the most challenging of economic
environments," said Bob Bishop, chief executive officer of SGI. "We are gaining
strength and credibility with our customers."
Operating expenses, excluding restructuring and other special charges, were $146
million, compared with $176 million for the previous quarter. Gross margin for the
second quarter was 40%. This is compared with 35% for the first quarter, excluding a
one-time payment from an intellectual property agreement.
As of December 28, 2001, unrestricted cash, cash equivalents and marketable
investments were $120 million compared with $122 million for the previous quarter.
During the quarter, the Company retired a loan in connection with the closure of its
Swiss manufacturing facility, and reduced and restructured its Japanese yen loan.
SGI will conduct a conference call today at 2:00 p.m. PST to provide additional details.
The dial-in number is: 888-208-1824 and the webcast site is www.sgi.com. An audio
replay of this call will be available after 5 p.m. PDT today at 888-203-1112 (passcode:
509557) for seven days. All links to the archived webcast and audio replay are
available through SGI's web site at sgi.com.
International investors can dial 719-457-2633. International replay is 719-457-0820,
passcode 509557.
sgi.com
tom watson tosiwmee |
