Here's the full press release:
Silicon Graphics Reports First Billion Dollar Quarter
New 'O Series' Product Line Fuels Revenue Growth
July 24, 1997 04:34 PM
MOUNTAIN VIEW, Calif., July 24 /PRNewswire/ -- Silicon Graphics, Inc. SGI today announced results
for its quarter and fiscal year ended June 30, 1997.
The Company's $1.2 billion in revenues marked its first billion dollar fiscal quarter and represented a 28%
increase over the quarter ended March 31, 1997. Revenue growth was balanced across the company's business
units and was especially driven by the success of the Octane(TM) workstation and Origin(TM) 2000 scalable
server families.
"This quarter was all about execution," commented Edward R. McCracken, chairman and chief executive
officer. "Our product transition is complete, we are shipping our entire product line without significant
constraints and, most importantly, the new products are finding strong acceptance with customers. We are
entering the new fiscal year with our entire organization aligned to build on this success and we are
encouraged by our prospects for fiscal 1998."
Fourth quarter 1997 revenues represented a 19% increase over the $977 million in revenues for the year ago
quarter. Net income for the quarter increased to $102 million, or $0.56 per common share, compared with a
net loss of $49 million or net loss of $0.30 per common share in the year ago quarter. Pre-tax merger charges
related to the April 1996 acquisition of Cray Research were $6 million for the quarter ended June 30, 1997
and $120 million in the same quarter a year ago.
Total revenues for the fiscal year ended June 30, 1997 were $3.7 billion, a 25% increase over the Company's
results as reported for fiscal 1996. Including the Cray Research revenue for the full fiscal year 1996 on a pro
forma combined basis, the Company's revenue grew 7%. Net income for fiscal 1997 was $79 million, or
$0.43 per common share, compared with net income of $115 million, or $0.65 per common share for fiscal
1996. Pre-tax merger charges were $53 million for fiscal 1997 compared with $121 million for fiscal 1996.
The Company's consolidated backlog at June 30, 1997 was $537 million.
Silicon Graphics, Inc. is a leading supplier of high-performance interactive computing systems. Silicon
Graphics and its subsidiaries have offices throughout the world and headquarters in Mountain View,
California.
NOTE: Silicon Graphics and the Silicon Graphics logo are registered trademarks of Silicon Graphics, Inc.
Octane and Origin are trademarks of Silicon Graphics, Inc.
SILICON GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share amounts)
Three Months Ended Twelve Months Ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996(A)
(UNAUDITED)
Product and other revenue $1,011,896 $ 835,264 $3,086,789 $2,553,128
Service revenue 150,421 142,109 575,812 368,188
Total revenue 1,162,317 977,373 3,662,601 2,921,316
Costs and expenses:
Cost of product and other
revenue 512,226 463,679 1,697,278 1,279,742
Cost of service revenue 85,396 84,716 325,269 202,697
Research and development 125,196 121,915 479,101 353,461
Selling, general and
administrative 297,712 246,593 1,038,312 807,830
Merger-related expenses 3,110 101,918 10,757 103,193
Total costs and expenses 1,023,640 1,018,821 3,550,717 2,746,923
Operating Income (loss) 138,677 (41,448) 111,884 174,393
Interest and other (expense)
income, net (9,323) (385) (13,694) 14,395
Income (loss) before income
taxes 129,354 (41,833) 98,190 188,788
Provision for income taxes 26,951 6,871 19,639 73,751
Net Income (loss) $ 102,403 $ (48,704) $ 78,551 $ 115,037
Net income (loss) per
common share $ 0.56 $ (0.30) $ 0.43 $ 0.65
Common and common
equivalent shares used in
the calculation of net
income (loss) per common
share 183,461 164,388 182,637 175,790
(A) Fiscal year 1996 amounts include the results of Cray Research, Inc. for the fourth quarter only.
SILICON GRAPHICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, June 30,
1997 1996
ASSETS
Current assets:
Cash and cash equivalents $ 227,222 $ 257,080
Short-term marketable investments 60,109 38,316
Accounts receivable, net 1,131,647 978,874
Inventories 628,064 520,045
Prepaid expenses and other current assets 268,552 301,940
Total current assets 2,315,594 2,096,255
Other marketable investments 86,961 161,541
Property and equipment, at cost 940,695 825,359
Accumulated depreciation and amortization (415,243) (360,480)
Net property and equipment 525,452 464,879
Other assets 416,585 435,571
$3,344,592 $3,158,246
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts and notes payable $ 299,684 $ 397,838
Other current liabilities 786,522 703,600
Total current liabilities 1,086,206 1,101,438
Long-term debt and other 419,145 381,490
Stockholders' equity:
Preferred stock 16,998 16,998
Common stock 178 173
Additional paid-in capital 1,263,007 1,172,787
Retained earnings 537,237 461,311
Treasury stock -- (867)
Accumulated translation adjustment and other 21,821 24,916
Total stockholders' equity 1,839,241 1,675,318
$3,344,592 $3,158,246 SOURCE Silicon Graphics Inc. |
