Silicon Graphics turns a profit??? in second quarter
MOUNTAIN VIEW, Calif., Jan 22 (Reuters) - Silicon Graphics Inc. (NYSE:SGI - news), announced on Tuesday a fiscal second quarter profit after a loss a year earlier, as the company restructured amid a technology downturn.
SGI, which makes powerful server computers used by Hollywood and defense contractors, reported a profit of $37 million, or 19 cents per diluted share in the December-ending quarter, compared with a loss of $71 million, or 38 cents per share in the year-earlier period.
Excluding one-time items and gains, SGI had a pro forma profit of $400,000, or nil per share.
Revenue was down to $364 million from $487 million a year ago.
``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,'' Bob Bishop, chief executive officer of SGI, said in a statement.
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SEC Cautions Companies, Alerts Investors to Potential Dangers of "Pro Forma" Financials
FOR IMMEDIATE RELEASE
2001-144
Washington, DC, December 4, 2001 — Today we are issuing cautionary advice that companies and their advisors should consider when releasing "pro forma" financial information. We believe it is appropriate to sound a warning about the presentation of company earnings and operating results on the basis of methodologies other than Generally Accepted Accounting Principles (GAAP).
We are also issuing an "Investor Alert" that describes how "pro forma" financials should be analyzed, including a reminder that they should be viewed with appropriate and healthy skepticism. Because "pro forma" financial information by its very nature departs from traditional accounting conventions, its use can make it hard for investors to compare an issuer's financial information with other reporting periods and with other companies.
sec.gov
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Silicon Graphics Posts Net Profit
On Cost Cuts Despite Revenue Drop
Silicon Graphics Inc. said a gain from the sale of a majority interest in its Japanese subsidiary and a massive reduction in costs led to a net profit for its fiscal second quarter, even though revenue fell 25% from a year earlier. For the period ended Dec. 28, the Mountain View, Calif., computer maker reported net income of $37.2 million, or 19 cents a share, including a gain of $56.6 million and charges of $15 million related to restructuring and other items. Before the charges and gain, it was break-even on a per-share basis. According to Thomson Financial/First Call, analysts were expecting a loss of 14 cents a share before items. For the year-earlier period, the company posted a net loss of $71.1 million, or 38 cents a share. Revenue fell to $363.9 million from $486.9 million a year earlier. The company released results after markets closed. |
