SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 89.96+1.1%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: James Tarifa who wrote (2885)10/6/1997 3:35:00 PM
From: James M. Bash   of 14451
 
I listened to the conference call at 8:45 this morning and (to
me) it actually didn't sound as bad as all this. In addition to
reiterating what they said in the press release, they cited
"a strong Q4 and deferral of business into Q2" as a major
reason for the shortfall.

McCracken said "Q4 drained the pipeline" and they found the
sales cycle to take longer than expected. As stated in July,
they worked to get their backlog down from $527m at the end
of Q4 to $300m on schedule, but now it stands at $400m from
[new] orders received too late.

As stated in the release, growth in U.S. server sales was less
than expected. Also they didn't get the Government orders they
thought they might in September.

McCracken said they would intensify their marketing and sales
programs and cut some operating costs, and finished by stating,
"we believe we can achieve meaningful growth in the second
quarter." (Last year the second quarter revenues were $825m.)
He stressed (my paraphrasing) that none of the recent quarters
by themselves represent the true picture of the company (depth
to height to depth), rather it's somewhere in between.

The call is available for replay on the Bloomberg terminal for
whoever has it...
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News