SGI Announces Key Sales Wins for Fourth Quarter 20th Anniversary Year Marks More Than 575 SGI Reality Center Facilities Installed, DARPA Contract for High-Productivity Computing, And Launch of Shared Storage Strategy MOUNTAIN VIEW, Calif., Aug. 5 /PRNewswire-FirstCall/ -- In its recently completed fourth quarter for fiscal year 2002, SGI (NYSE: SGI - News) posted several key sales wins, saw its government and defense sector grow to nearly a third of its total business, secured another DARPA contract, saw growth in its graphics business and launched its shared SAN filesystem solution.
This past quarter Silicon Graphics reached a significant milestone with more than 575 SGI® Reality Center(TM) installations worldwide. Since the opening of the world's first Reality Center facility in Reading, England, in 1994, SGI has pioneered the concept of an immersive, collaborative visualization environment. Today, these SGI Reality Center immersive visualization facilities deliver the highest quality performance and realism, enabling technical and creative professionals to engage in interactive, real-time engineering and design review, multidimensional data analysis, critical training, presentation and command-and-control operations. SGI Reality Center is also a key component in the company's Visual Area Networking (VAN) vision, which enables SGI customers to access and control these centralized supercomputers from remote locations over any device and to work collaboratively while doing so. Visual Area Networking puts high-performance, interactive visualization in the hands of surgeons, scientists, engineers and creative professionals, no matter where they are located. Sales of SGI's VAN solution gained momentum this quarter as well.
Joining the more than 575 SGI Reality Center facilities that have been installed worldwide:
-- DaimlerChrysler AG has chosen SGI as the lead contractor and system integrator to completely update and expand its Virtual Reality Center (VRC), located in Sindelfingen, Germany. The order is valued at 6.5 million euro ($6.4 million U.S.). The order was received in May with an estimated project completion date of January 2003. SGI will be responsible for all project activities for expanding the capacity and functional capabilities of this key visualization technology that has already proven productive for DaimlerChrysler AG. These latest enhancements will ensure that the VRC holds an unequivocal top position as the world's largest and most complex central facility for immersive visualization used on a productive day-to-day basis. SGI(R) high-end visualization systems, including InfiniteReality4(TM) graphics, are included in the order. SGI Professional Services will deploy the management software for the uniquely efficient steering of the center. The VRC, located at the heart of the Mercedes Technology Center (MTC), is used intensively by designers, engineers and project managers for different automobile projects, allowing them to rapidly analyze and understand their digital models and simulation results. The Mercedes teams are also able to optimize and validate models and make the right decisions at the earliest possible stage within an ideal environment for multidisciplinary collaboration. -- The Multimedia Development Corporation (MDC), a government-owned corporation that was appointed to spearhead the development and implementation of Malaysia's Multimedia Super Corridor (MSC), is establishing the Creative Application Development Center (CADC), to be powered by SGI technologies. The CADC comprises three components -- Render Host, Reality Center and VAN. It is an integrated rendering and visualization facility with full interactive capabilities for VAN (either with other SGI Reality Center facilities or with local centers). It can run and visualize content for industries and users -- especially those in the energy, manufacturing, government and defense, education and sciences, and media and entertainment sectors -- based on immersive technologies as well as 2D/3D graphics content. The CADC configuration includes a 16-processor SGI(R) Onyx(R) 3800 visualization system, two SGI(R) Total Performance 900 (TP900) storage systems, and two Silicon Graphics Fuel(TM) visual workstations. Its Reality Center features include a 12-foot-radius cylindrical screen and three DLP(TM) projectors. The CADC, a collaboration between SGI and MDC, aims to be a world-class high-performance computing and visualization facility to boost the level of competitiveness and competency of local as well as MSC-status companies in Malaysia. The MSC is a part of Malaysia's Vision 2020, whose chief architect is Malaysia's Prime Minister of 21 years, YAB Dato' Seri Dr. Mahathir Mohamad. The Vision aims at Malaysia achieving leadership in the Information Age and becoming a fully developed, matured and knowledge-rich society by 2020. -- TWR in England, has, for more than 25 years, provided the automotive industry with fully integrated services in vehicle design, engineering, and manufacturing. Since the installation of its first SGI Reality Center facility in 1999, the company has been able to move significantly beyond the limitations of CAD technologies when designing and engineering automobiles, automobile components and systems for its OEM customers. SGI has recently provided an upgrade to this facility, which now uses an SGI(R) Onyx(R) 3400 system with three InfiniteReality3(TM) graphics pipes to drive the Reality Center environment. To support this upgrade, TWR also purchased an additional 20 Silicon Graphics Fuel(TM) visual workstations for running Dassault Systemes CATIA(R) CAD/CAM software. -- Superlab at Sci-Quest, the North Alabama Science Center selected the SGI Reality Center environment, based on an SGI(R) Onyx(R) 300 visualization system, to generate rich three-dimensional graphics from complex data sources and present the fastest and highest quality graphics for learning about the physics of space, weather forecasting and a myriad of other science applications. The SGI solution was selected in part for its capacity to create the real-time stereo-viewing experience necessary for an immersive visual environment. By implementing the SGI Visual Area Networking solution using OpenGL Vizserver(TM) 2.0 software, Sci-Quest will be able to distribute content generated by Onyx 300 via the Internet to students and teachers in classrooms all over Alabama and the region. SGI Professional Services designed a cost-effective solution including hardware, software, support and training that addressed Sci-Quest's requests and, in fact, anticipated future needs, resulting in an immersive learning environment that is well ahead of the state of the art in science center applications. This state-of-the-art facility will allow children and teachers from preschool through 12th grade, along with visitors of all ages, to participate in experiential interactive learning in a highly realistic, immersive visual environment that Sci-Quest will use to promote science education. -- SGI, along with partner, Mechdyne Corporation completed a cutting-edge large-scale visualization system for the New Media Innovation Centre (NewMIC) in Vancouver, British Columbia. A uniquely designed visualization system developed and marketed by Mechdyne, the MD Flex(TM) system is the world's first commercially available reconfigurable large-scale visualization solution. NewMIC's MD Flex features three 10x8-foot vertical panels and a floor projection surface that can be quickly and easily configured as a fully immersive walk-in environment, an angled, interactive theater, or a single, flat display wall. An SGI(R) Onyx(R) 3200 visualization system with two InfiniteReality3 graphics pipes generates high-fidelity 2D and 3D images, which are projected onto the walls and floor by four CRT projectors, immersing users in the virtual environment. The system will provide a key platform for research in electronic gaming, networking, and Web design and creation. NewMIC anticipates that the system will also further strengthen British Columbia's commanding presence as the home to world-leading companies and researchers in gaming and entertainment applications of new media and in electronic commerce, the Internet, wireless applications, and design.
As SGI celebrates its 20th anniversary of graphics leadership and innovation, it has been selected by the Defense Advanced Research Projects Agency (DARPA) to conduct a concept study for a new vision of high-performance computing. The 12-month concept study is the first phase of a three-phase DARPA program designed to create a new generation of economically viable, scalable high-productivity computing systems for the national security and industrial user communities by 2010. Coincidentally, SGI was founded on a DARPA grant two decades ago. Among the wins in the government and defense sector were:
-- Lockheed Martin Aeronautics Co. purchased a wide range of SGI advanced visualization and high-performance computing technologies as part of its efforts to find the best ways to design, build and maintain the Joint Strike Fighter (JSF). The latest multimillion-dollar purchase orders booked in the March quarter and fourth quarter include SGI Onyx family visualization systems and SGI(R) Origin(R) family servers, as well as Silicon Graphics(R) 750 and Silicon Graphics(R) Octane2(TM) visual workstations. Two SGI(R) Onyx(R) 3800 systems were also part of a JSF order in the December quarter. SGI workstations run CATIA engineering and design applications while SGI servers and visualization systems power Lockheed Martin's JSF flight simulation laboratory in Fort Worth, Texas. -- Los Alamos National Laboratory purchased a 512-processor SGI(R) Origin(R) 3000 series supercomputer for advanced climate modeling studies.
The fourth quarter also marked the launch of unique storage products that solve the problem that has long frustrated technical professionals: how to store and manage very large sets of data without compromising performance. SGI announced the SGI SAN Server(TM) 1000, a new integrated storage solution that combines the performance and scalability of a storage area network (SAN), with the connectivity and file sharing of network attached storage. CXFS(TM), the high-performance shared file system from SGI, is a key component of this solution. During the quarter, SGI extended CXFS to multi-platform SANs with support for the Sun(TM) Solaris(TM) and Windows NT® operating systems. Customers planning to implement SGI shared storage solutions include:
-- The National Cancer Institute in Frederick, Maryland, purchased a 64-processor SGI Origin 3800 supercomputer, an SGI(R) TP9400 storage system with 6TB of storage configured in a SAN with SGI CXFS and three 8-processor SGI Origin 300 systems, as well as CXFS for Solaris clients, and two SGI(R) TP900 storage systems. This integrated SGI high-performance computing and storage solution will be used for bioinformatic and chemistry applications pertaining to AIDS, cancer and Anthrax vaccine research. NCI-Frederick is located within the Ft. Detrick U.S. Army base and is the Department of Health and Human Service's only government-owned, contractor-operated facility. More than 100 principal investigators located at NCI-Frederick direct research aimed at exploring the causes of cancer, AIDS, and related diseases. -- TOTAL FINA ELF (TFE) is the fifth-largest oil and gas company worldwide. TFE's Expert Center located in Pau, south-west of France, provides technical expertise to 44 subsidiaries in seismic processing and reservoir-simulation domains. In order to answer the constantly growing needs of computing power, TFE, a long-time SGI customer, decided to upgrade its site. The company purchased a new 64-processor SGI Origin 3800 system with 256GB of memory. This new system is connected to its first 64-processor SGI Origin 3800 system enabling TFE to leverage the performance of this combined 128-processor SGI Origin 3800 system. It enables geophysicists and reservoir engineers to run more jobs, using larger data sets in order to get more accurate estimates of areas of exploration. In addition, the company has upgraded its 32-processor SGI(R) 2000 server from 300MHz to 500MHz MIPS(R) processors. Due to a sustained increase in TFE's data production, the company also purchased 3TB of additional disks arrays for its SGI TP9400 storage system. This provides a complete SAN solution based on SGI CXFS shared SAN filesystem software that enables complete data sharing and dramatically increases workflow and production ratio. TFE has also implemented SGI(R) DMF (Data Migration Facility) for moving data from disk to tape in its Expert Center. -- Danish Broadcasting (DR) awarded the second phase of its new digital newsroom project to SGI for the delivery of digital systems for its second-generation management of television news and sports broadcasts. The project, valued at $6.5 million (U.S.), has an estimated completion date of December 2003. As it was in the first phase, SGI's responsibilities include the design of the overall digital architecture, the integration of the required multivendor technologies, and a variety of professional services, project management, and project-specific software development. This agreement represents a major milestone for DR-it is necessary to go back to the shift from film to video technology for DR's news broadcasts in the 1970s to find a change as significant in broadcast technologies and workflows. For DR personnel in the news and sports departments, the digital systems will significantly change current workflows, resulting in more effective and efficient production methods. DR staff will also have much faster access to archived material, and will be able to share video and sound material across the company's TV, radio and online operations. Included in the purchase are eight SGI Media Server(TM) for broadcast systems, a 24-processor SGI Origin 3000 series system, a 12-processor SGI Origin 300 system, two SGI TP9400 storage systems with 3.4TB of storage, and SGI DMF for moving data from disk to tape that will serve as the foundation for archiving material. Broadcast Integration Service which is an XML-based API developed by SGI Professional Services, provides interfaces to all the different client software and systems including the Web front end developed by DR. This combination makes it into the most sophisticated and flexible asset management system in the broadcast industry. -- Design organization Volke Mlada Bolesaw, based in Germany with established offices in the Czech Republic since 1993 (as Volke Entwicklungsrings GmbH) and 120 employees pushing the envelope in motor-car development, construction, technical designs and documentation, purchased 11 Silicon Graphics Fuel visual workstations with 600 MHz MIPS RISC processors and 1 GB memory, and an SGI(R) File Server system based on the SGI Origin 300 server and SGI Total Performance storage system. Volke is a long-time SGI customer with an installed base of more than 90 SGI systems.
Other significant sales in the fourth quarter include:
-- The National Supercomputer Centre (NSC), located at University of Linkoping, has expanded its SGI Origin 3800 supercomputing system to 128 500Mhz R14000(TM) processors and 128GB of memory. NSC provides supercomputing services to government organizations, academic institutions and industrial corporations across the country. Applications include military and commercial aircraft research and design, weather forecasts, and biochemistry research, the largest single academic use of the system, along with physics, geoscience, astronomy and engineering applications. -- Infraconcepts, a Holland-based company, selected a VOD solution from SGI and Thirdspace to launch SmarTV, Sweden's first broadband video-on-demand (VOD) network. In the initial phase, SmarTV will be delivered to 1,500 households outside Stockholm, in Sollentuna. The solution from SGI and Thirdspace will allow SmarTV to cost-effectively scale up to support the whole community of 22,000 households. The VOD solution is based on the SGI Origin 300 server platform and Thirdspace(TM) OVS video server software as well as the Thirdspace Application Layer, known as OVA, which handles all business logic in the system. The three components form the most scalable interactive TV platform available.
This news release contains forward-looking statements regarding financial and contractual commitments that are subject to risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from those described in such statements. The reader is cautioned not to rely unduly on these forward-looking statements, which are not a guarantee of future or current performance. Such risks and uncertainties include long-term program commitments, the performance of third parties, the sustained performance of current and future products, financing risks, the ability to integrate and support a complex technology solution involving multiple providers and users, and other risks detailed from time to time in the company's most recent SEC reports, including its reports on Form 10-K and Form 10-Q. |