breakfast meeting news
by: jeff_sharon
Long-Term Sentiment: Strong Buy
02/11/02 01:28 pm
Msg: 84616 of 84637
I just got back from the meeting. It was a two and a half hour trip.
It was a lot more intimate meeting than I expected. There were 11 people total. That included Bishop,
Zellmer and Larissa DeCarlo (Director of Investor Relations), 2 brokerage, institutonal guys, some BIG
investors and me.
My first impression of Bishop is, he is a guy who deeply cares about SGI.
Let me start out by saying I'm just a regular person there were a few things I did not completely
understand, I will research them before I post incorrect information about them. (nothing bad)Everything
I am posting is from my notes, and as correct as I can recall.
We were seated at a round table, there was an overhead with the power point file from the website, that
someone already posted. Mr. Bishop and Zellmer spent most of the meeting talking with us and did not
refer to the presentation.
He (Bishop) spent the majority of the meeting talking about VAN. He expects it to be the "killer app" that
will provide future growth and earnings. (no suprise there)
He said SGI is working on a massive storage strategy that will hold up to 18 exobytes of data (1000
petabytes).
He spent some time on the NEC sale. He said in addition to the cash, there was intrinsic values to the
sale. He said that by selling what amounted to 7% of the company, he was able to value the whole
company for a larger value than what Wall Street gives credit for.
Also he said NEC has about 7000 sales people who will now be selling SGI products.
He talked a bit about the 4th generation computer. Right now there top of the line computer can scale to
512 processors, (they have built one with 1024 processers for NASA)the next generation will be able to
scale up to 32,000+ processors.
Currently he thinks we have about 10% of the 18-20 billion dollar market in their 5 core areas: energy,
entertainment, science, oil exploration and one other.
He thinks achieving 30% of this market is resonable.
Zellmer and Bishop could not talk about the microsoft deal.
SGI holds approximately 500 patents.
Mr. Bishop was asked about spinning off or selling Alias/Wavefront, he said his options were open but
he was not expecting on selling them soon.
The new servers that will be utilized in the Visual Area Networks will utilize Mips processors and not
use Intel or AMD 64 bit chips.
Again my final impression is that the CEO and CFO care about the company for the long term. The
excitement in his eyes and voice when he was talking about VAN was inspirational.
Good Luck fellow longs.
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