MOUNTAIN VIEW, Calif., Oct. 21 -- Silicon Graphics, Inc.
(NYSE:SGI) today announced results for the first quarter of its
1999 fiscal year. Revenue for the first quarter was $616
million, compared with $768 million in the same quarter a year
ago. Operating expenses for the quarter were $335 million,
down approximately $40 million from the previous quarter and
same quarter a year ago.
The Company reported a net loss, including the Company's
gain on the initial public offering of its MIPS Technologies
subsidiary, of $44 million, or $0.24 per share, compared with
a net loss of $56 million, or $0.31 per share, in the same
quarter a year ago. Excluding the MIPS gain, the Company's
net loss would have been $77 million, or $0.41 per share.
"Reporting a loss is never satisfying, but I am very encouraged
with the progress demonstrated in this quarter's results," said
Richard Belluzzo, chairman and chief executive officer. "One of
our key strategic objectives is to impose discipline on our cost
structure which has resulted in operating expenses coming
down dramatically for the quarter. We've also sharpened our
focus on our core businesses with the successful initial public
offering of our MIPS subsidiary. And we continue to see
strong performance in our Origin server program. This
quarter's results validate that our efforts are on target."
"While we still have a way to go before we achieve sustained
profitability," added Belluzzo, "We are encouraged by the
progress we are making in transitioning our business to growth
markets. Our new NT workstation product is an important
element of that transition, and that product has been
rescheduled for introduction in the first half of January. We
remain encouraged by the response the product is receiving
from customers, industry analysts and software developers."
The Company's cash position continued to increase during the
first quarter, as a result of the MIPS offering, increased
collections of accounts receivable and lower inventory
purchases. Cash, cash equivalents and marketable investments
were $757 million at September 30, 1998, as compared to
$737 million at June 30, 1998. The Company's consolidated
backlog at September 30, 1998 was $317 million. All earnings
per share amounts represent diluted earnings per share as
defined in Statement of Financial Accounting Standards No.
128.
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