SGI says loss narrows, tech spending still slow
MOUNTAIN VIEW, Calif., July 25 (Reuters) - Specialized computer maker Silicon Graphics Inc. (SGI) (NYSE:SGI - News) on Thursday said its fiscal fourth-quarter loss narrowed from a year earlier due to cost cuts and restructuring, but said customers were taking longer to buy new technology.
The Mountain View, California-based company, which make sophisticated computers for visualization in the military and in Hollywood, said its loss narrowed to $24.6 million, or 12 cents per share, from a loss of $231.8 million or $1.20 per share a year earlier.
SGI said its operating loss narrowed to $18.7 million from $207.1 million a year earlier. Revenue fell to $284.5 million from $431.5 million a year earlier.
The company said on July 8 lowered its revenue projection to $280 million and $290 million in the quarter ended June 28 from the $310 million to $330 million it projected on April 22. On July 8, it forecast an operating loss of $20 million to $25 million.
In April the 20-year-old Silicon Valley company, facing strong competition from other computer companies touting Linux-based equipment for visualization, also had warned that it expected an operating loss in the mid-teens millions, not the break-even quarter or slight profit Wall Street had been expecting. |
