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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 88.96

-2.3%

3:59 PM EST

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To: Mitch Blevins who wrote (567)	1/7/1997 11:33:00 PM
From: Paul Jamerson	of 14451

They have very lousy margins on their latest $6k machine. Their MTI division can't keep up with the rest of the industry. I have friends in the division who said they don't believe they will be a viable u-processor design group by next generation. The problem is SGI doesn't have the volumne need to drive the cost of the u-processor down. So NEC doesn't have the economy of scale. The backlog comes from the fact SGI isn't executing and can't make the systems.

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