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

To: Don Green who wrote (8792)	4/20/2001 12:27:00 PM
From: Don Green	Respond to of 14451

Silicon Graphics Posts Wider Loss, Announces Plans to Cut 1,000 Jobs Dow Jones Newswires MOUNTAIN VIEW, Calif. -- Silicon Graphics Inc. posted a much wider net loss for its fiscal third quarter and announced plans to eliminate about 1,000 jobs, or 15% of its global work force, in the current quarter. To combat the economic slowdown, SGI said it is making changes in its operations that should enable the firm to break even at current revenue levels as it enters its next fiscal year. As part of the plan, SGI will eliminate about 1,000 regular, temporary and contractor positions and take a restructuring charge of $60 million to $80 million for its fiscal fourth quarter ending in June. The company expects to reduce operating expenses by 20% with the layoffs. The maker of computer workstations and graphics systems Friday said its net loss for the quarter ended March 31 came to $141.1 million, or 74 cents a basic share, compared with a net loss of $18.1 million, or 10 cents a share, a year earlier. Revenue fell 9.6% to $509.7 million from $563.7 million. Excluding charges, SGI said its loss from operations narrowed to $47 million from $93 million a year earlier. The company didn't immediately provide a per-share loss from operations. Analysts surveyed by Thomson Financial/First Call expected a loss from operations of 25 cents a share. SGI noted that its the latest results marked the company's third consecutive quarter of sequential revenue growth and improved operating performance. For the second quarter ended Dec. 31, the company posted a net loss of $71 million, or 38 cents a share, on revenue of $486.9 million. "SGI's mission to be the world leader in high performance computing and visualization solutions for technical and creative users is resonating with our customers," Bob Bishop, chairman and chief executive officer, said in a prepared statement. "However, the economic uncertainty is clearly having a noticeable impact on the timing of our customers' technology spending."