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Technology Stocks : Silicon Graphics, Inc. (SGI) -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (8156)	10/23/2000 8:32:48 PM
From: Don Green	Read Replies (1) \| Respond to of 14451

SGI Q1 loss smaller than forecast 23 Oct 2000 03:39 GMT (Reuters) (Adds details, CEO comments in paragraphs 6,7) MOUNTAIN VIEW, Calif., Oct 22 (Reuters) - Computer workstation maker SGI (SGI) Monday reported a first quarter loss that was smaller than Wall Street's latest forecasts. The company, which earlier this month warned analysts that losses would be larger than expected, said it lost $49 million or $26 cents per share in the quarter, compared with a loss of $225 million or $1.24 a share in the year-ago quarter. Analysts, who had adjusted estimates following the warning earlier this month, had been expecting a loss of 46 cents per share, according to First Call/Thomson Financial, which tracks forecasts. Revenues fell to $426 million from $585 million the year before. SGI said that after adjusting for the divestiture of its Cray Research and MIPS Technology division, its pro-forma revenues in the year-ago quarter were $514 million. SGI, which makes advanced graphics computers used for design and simulation, earlier this month warned that a components shortage would cause its first quarter earnings to fall short of forecasts. The company is in the process of cutting costs and restructuring operations in an effort to improve results. "We continue to be encouraged by the positive response our products are receiving from customers, in particular their outstanding benchmark performance, and the order momentum we are experiencing," Chief Executive Bob Bishop said in a statement. "While there is no short-term resolution to this industry-wide component shortage, we are making every effort to lessen its impact on our business." SGI said it expects to "significantly improve" operating results in the second half of the year. The company's shares closed up 1/8 at $4-1/2, prior to release of the earnings.