Brush -
Please substantiate.
I got the general info off HPs investor relations www page. I'm sure you can too. Or were you perhaps disputing my assertion that SGI is the #1 high-performance and computer graphics company in the _world_?
If you don't think that's true, just take a look @ the list of the top 500 fastest supercomputers in the world. Take a look @ the list of the fastest graphics systems, from the desktop to rack systems (although, of course, I'd dispute some of the sillier benchmarks).
HP isn't a billion $ company. They're a $40 billion company. See
hp.com
If they don't get good margins on PCs, they must be getting really
great margins on everything else, because last quarter their return
on sales was 7.5%. How loooong until SGI can do that again?
I'm well aware of HPs worth. My point was not that they are worth exactly $1b dollars (and you know it), but rather that they owe the vast majority of their success and dollars in the bank to their amazing printer business. There's nothing wrong with that, it's just the way it is. You know as well as I that margins on PCs suck. Margins on some of their other businesses are great, though.
Oh, they bought the farm, all right.
You seem to have something against the merger, am I right?? Please articulate it.
15% according to your own financial PR. And for the 12 months ending March 31, -2%. Even GE grew 13%:
Alright, I was wrong by 1%. The -2% may be correct, I've not looked. The fact is, though, that the Cray acquisition cost a tremendous amount of money. That expenditure is going to be (and has been) reflected for several quarters. Like I said, you've got to spend money to make money. The high end machines, both with the Cray and SGI labels on them, are selling very well, and the Cray division is really starting to contribute. I think you'll see that this quarter. I wonder if GE has had $58M of merger charges during the last 3qtrs?
HP made almost as much profit as SGI did in sales!
Yup, you're right. I was looking @ the wrong numbers. Somehow, I knew it couldn't be that low, my mistake.
Tell me about it.
I still think you seem to have some unresolved issues wrt. the Cray aquistion.
Revenue was rising a lot faster before SGI bought Cray.
This was a major purchase. You don't pay for it overnight, and while you're paying for it, you'll have less money. Doesn't that seem reasonable?
You seem like a bright guy--you should know profit is the name of the game.
I'll admit it, I don't know much about finance (thank god). I know computers. That's what I do. That being said, I can look at the products, the volume, the employees, and the way management is shaping things up, and be able to tell that SGI is not in the trouble you seem to want us to be. I'm glad you think I'm bright, though, I'll sleep much better knowing that.
-justinb
P.S. - Given your apparent negative attitude wrt. SGI, why do I detect a note of 'longness'? |
