SGI Reports Fourth Quarter and Fiscal Year 2005 Results
July 28, 2005 4:10 p.m.
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MOUNTAIN VIEW, Calif., July 28 /PRNewswire-FirstCall/ -- Silicon Graphics (NYSE: SGI) today announced results for its fourth fiscal quarter and fiscal year ended June 24, 2005.
Revenue for the fourth quarter was $172 million, in line with the preliminary results announced July 7, 2005. Gross margin was 36.7% compared with 34.5% in the third quarter. SGI's fourth-quarter operating loss was $16 million, compared with an operating loss of $45 million in the third quarter. Net income, including the net gain from the sale of a portion of the Company's interest in SGI Japan, was $8 million or $0.02 per share on a fully diluted basis, compared with a net loss of $45 million or $0.17 per share in the third quarter.
Revenue for fiscal 2005 was $730 million. The net loss was $76 million or $0.29 per share for the fiscal year.
"Our fourth quarter showed sequential revenue and bookings growth, and the lowest operating expenses for the fiscal year," said Chairman and CEO Bob Bishop. "Nevertheless, we need to accelerate the turnaround and strengthen our financial position going forward."
SGI has retained the turnaround firm of Alix Partners LLC to advise it in further reducing expenses, increasing revenue and improving liquidity. SGI expects to announce significant restructuring actions later this quarter, and is actively pursuing financing alternatives, including amending or replacing its asset-based credit facility to increase borrowing availability. As previously disclosed, SGI did not meet its EBITDA covenant for the fourth quarter under its asset-based credit agreement. Covenant waivers have been obtained on several prior occasions.
As of June 24, 2005, unrestricted cash, cash equivalents and marketable investments were $64 million compared with $84 million at March 25, 2005.
SGI will conduct a conference call today at 2 p.m. PT to provide additional details. The webcast is available at sgi.com . The dial-in number is (800) 817-2743 or (913) 981-4915 for participants outside North America. An audio replay of this call will be available after 5 p.m. PT today at (888) 203-1112 (passcode: 7788439) or (719) 457-0820 (passcode: 7788439) and will be available for seven days. |
