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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 90.81

-2.0%

3:59 PM EST

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To: Jerry Whlan who wrote (1914)	7/18/1997 11:54:00 PM
From: Paul Jamerson	of 14451

Jerry Whlan saids: >My take is that MIPS probably couldn't deliver H1 in the promised >timeframe and > so they just bagged it in order to concentrate on H2-- (the >rumours are H2 is > (among other things) two cpus on one die). I think this bodes >poorly for SGI as > delivery is now probably well beyond initial Merced shipments >(though HP/Intel are > so closemouthed about Merced one can never tell if it is really >on track). That is exactly what happened. Beast has been cancelled, the team will go on to the next project. This is very negative for SGI processor design reputation, but very positive for the company. If H2 isn't delivered on schedule it will be the end of MTI. This give SGI two choices, use Intel (which is good) then SGI could concentrate on graphics software/hardware (which sgi is great at). In the short term the processor would be Merced, later another processor from Intel.

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