SGI Reports First Quarter Results
Story Filed: Monday, October 21, 2002 4:01 PM EST
MOUNTAIN VIEW, Calif., Oct 21, 2002 /PRNewswire-FirstCall via COMTEX/ -- SGI (NYSE: SGI) announced results for its first quarter of fiscal 2003, which ended September 27, 2002. Revenue for the first quarter was $242 million and gross margin was 40.3%. This resulted in a GAAP net loss of $41.1 million, or $0.21 per basic and diluted share.
"Although we were disappointed with the revenue performance for the quarter, several key metrics remained strong, including product and service margins. We had strength in our graphics and storage products, and starting in November, we will release the first of our next-generation servers. These systems will build upon our unique NUMAflex architecture," said Bob Bishop, chairman and CEO.
Bishop added, "Our strategy is to continue to focus on data-intensive applications where the combination of visualization, storage and shared-memory supercomputing systems uniquely enable our customers, most of whom are Fortune 500 companies, to solve challenges at the strategic core of their businesses."
Operating expenses were $129 million, excluding $8 million in restructuring, a reduction from $140 million the prior quarter. With restructuring excluded, the company had an operating loss of $32 million, which was within the guidance given in July.
"We recognize our responsibility to maintain tight financial controls, which allowed us to be within overall guidance despite lower revenue," said Jeff Zellmer, CFO. "The fundamental improvements we've put in place over the last year have provided a platform for us to concentrate on revenue growth."
As of September 27, 2002, unrestricted cash, cash equivalents and marketable investments were $191 million, compared with $218 million in the previous quarter. |
