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

To: Don Green who wrote (8694)	3/28/2001 10:14:16 AM
From: Don Green	Respond to of 14451

Sun Microsystems Installs One of the Largest Supercomputer's at Germany's University of Technology Aachen -- Aachen Site Selected as Sun(TM) Center of Excellence for Computational Fluid Dynamics Story Filed: Tuesday, March 27, 2001 4:34 PM EST PALO ALTO, Calif., Mar 27, 2001 /PRNewswire via COMTEX/ -- Sun Microsystems, Inc. (Nasdaq: SUNW) announced today that one of the largest technical universities in Europe has selected its Sun Fire(TM) 6800 servers running the Solaris(TM) Operating Environment as well as Sun's(TM) GRID Engine networking software to build one of the largest supercomputers in the world. The University of Technology (Rheinisch-Westflische Technische Hochschule - RWTH) at Aachen selected the Sun(TM) computing platform over rivals, IBM, SGI, Compaq and Hewlett-Packard. As one of the biggest SMP (symmetric multiprocessing) clusters in the world, the system's integrated graphics and GRID computing will support large computational fluid dynamics simulations, as well as other compute-intensive applications. With the computing power of 2.3 Teraflops, trillions of floating point operations per second, in its final stage in 2002, the supercomputer at Aachen represents Sun's largest high performance computing (HPC) installation to date. "We chose Sun for their computational power, extensive software offering and versatility," said Christian Bischof, Professor for high-performance computing at the RWTH. "Sun's Sun Fire(TM) servers will allow us to boost current HPC applications, champion new HPC opportunities and function as a computing portal for researchers at the University and in the State of Northrhine-Westphalia." As one of the leading technical universities in Europe, RWTH Aachen has been selected as the Sun(TM) Center of Excellence for Computational Fluid Dynamics. "Adopting the role as Sun Center of Excellence provides Aachen with exposure as an institution that is advanced in its use of technology, and expands future partnership opportunities with Sun's Global Education and Research group as Sun continues to drive massive scalability for Internet based applications," said Joerg Schwarz, Manager for Scientific & Engineering Computing, Global Education & Research at Sun Microsystems, Inc. The installation of 32 Sun Fire 6800 servers will be staged over the next two years, starting in April 2001. Sun In Education Sun is a leading provider of open network computing solutions to colleges and universities around the world, powering academic, research and high performance computing systems, campus administration, digital libraries and student instruction systems. In addition, Sun is committed to connecting the world's students to the Internet, beginning with primary and secondary schools and extending to all levels of higher education. For information about Sun in Education, please visit sun.com .

To: Don Green who wrote (8694)	3/28/2001 10:15:40 AM
From: Don Green	Read Replies (2) \| Respond to of 14451

DG> Does anyone on this thread actually think SGI will make a P R O F I T , in any quarter, this year? I guess that left everyone speechless! Don

To: Don Green who wrote (8694)	3/29/2001 1:59:00 PM
From: Richard Habib	Read Replies (1) \| Respond to of 14451

Don, re SGI earnings, I think it's possible SGI will show an operating profit during 1 or more qtrs this calendar year. From there Dec qtr cc - an excerpt from my notes: ------------------- "In 2H01 targeting profitability in Q4 and Seq & yoy growth for units & rev. Beginning 2002 GM 42.5, R&D 10%, S&M 18%, G&A 7% operating profit 7.5%" "Outlook for next qtr Q3. Rev 525-550M, GM 34-36%, Opex 235-240M. Ongoing component shortages still an issue & goals won’t be meet if schedules for deliveries of components slip." ------------------------- Certainly, they have left themselves an out. And certainly, you've got to consider that the economy will change their outlook. But my personal opinion is that they are trying to be modest in their stated goals. In the cc, when asked about the enterprise shortfall, they noted more concern with government spending slowdown. SGI is a small player and their rev and earnings may be based on the quality of their wins and government spending vice more macro effects. We won't know till they tell us. Looking out another year of so I could see their rev stabilize at $1.6B. At 7.5% margin, earnings of .65 could yield a stock price of $9-10 with a PE of 15. Having consistently sold strike 5 calls against my position since last fall my cost basis is about $1.5. That would result a 500+% gain over a few years. In terms of $ risk reward it represents about a 6:1 ratio with my present position. I think that's a reasonable risk reward ratio. Sorry for not responding regarding the sub incident. If your still interested in discussing it, I'll be back to the computer later today. Rich