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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 94.27

+2.2%

Dec 11 3:59 PM EST

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To: dd who wrote (4441)	2/21/1998 11:08:00 AM
From: A. Silverstone	Read Replies (1) of 14451

I left SGI in 1987 and stopped consulting in early 1989. My inside knowledge is minimal at best. Most of the visions I had for products have been realized and the others (virtual reality) are on the horizon. My take on the company is based on the top management that was at SGI 10 years ago and should have been replaced long ago. Ed McC was a good leader when he had JC as his 'balance'. While they were worse than oil and water, they were excellent counter-foils. JC had the visions and Ed took the best of them and managed them to reality. JC pushed Ed McC to take bolder steps than he would have if not pushed by Jim. When Ed took his 'eye off the ball' and made TJ the top dog the problems started. Problems at the top that are "personal" result in strategic business problems that will bring down even the best of companies. The inventive talent at SGI was awesome. But (read between the lines)the 'diversions' in the personal lives of those at the very top of the management chain were a disaster for the sales/marketing area that wasn't populated by the great talent as was in engineering. Even engineering took a hit when Ed won the war with Jim. I know I wasn't the only one that was shocked by the TJ appointment. The future is as cloudy to me as it is to everyone else on this thread. I wish Belluzo all the best with what is left of the talent that hasn't moved on. SGI is a mature company now and must be managed as such. There is still a lot more 'dead wood' at the top to move out. When SGI brings in 'fresh ideas in high places' the profits will reflect the changes. If we don't see some major restructuring at the executive level and the same management continues to lead the company one man can't do it all), then we'll be lucky to see 20 again. (IMHO)

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