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

To: Ms. Baby Boomer who wrote (8808)	4/20/2001 8:08:14 PM
From: Don Green	Respond to of 14451

Silicon Graphics Posts Wider Loss, Announces Plans to Cut 1,000 Jobs A WSJ.COM News Roundup MOUNTAIN VIEW, Calif. -- Silicon Graphics Inc. shares dropped sharply after the company 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. In 4 p.m. trading Friday on the New York Stock Exchange, its shares were down 99 cents, or 25%, to $3.01. 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, or 25 cents a share, from $93 million a year earlier. Analysts surveyed by Thomson Financial/First Call expected a loss from operations of 25 cents a share. Analysts said the stock was dropping due the company's lack of guidance for future results. Silicon Graphics' third-quarter came in "largely in line," said Richard Chu, an analyst with SG Cowen Securities. The problem is the "forward outlook," he said. He added that the summer quarter is typically weak, which may pose a threat to the company's break-even goal. 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.

To: Ms. Baby Boomer who wrote (8808)	4/20/2001 8:09:59 PM
From: Ms. Baby Boomer	Respond to of 14451

SGI To Cut 1,000 in Bid To Stay In Graphics Game By Deborah Durham-Vichr, www.NewsFactor.com Friday April 20 06:54 PM EDT SGI, (NYSE: SGI - news), based in Mountain View, California, announced Friday that it will cut 1,000 jobs, amounting to about 15 percent of its workforce. The news came as the company posted a US$141 million loss for the quarter ending March 31st, a much wider loss than expected. The workforce cuts are aimed at putting the high-end computer maker back on a course to financial stability by June, when its next fiscal year begins. "Consequently, we are committing to an operating model that will enable us to break even at the current revenue level as we enter the next fiscal year," said SGI CEO Bob Bishop. Though net losses came to 74 cents per share, compared to a loss of $18 million or 10 cents per share for the same quarter last year, SGI said revenue had increased 5 percent from the preceding quarter. "All things considered, revenue grew, we raised gross margins, and we had a third-quarter decrease in operating expenses," Richard Marshall, SGI's director of communications, told NewsFactor Network. Delayed Purchases Hurt Company officials cited marketplace uncertainty as a major factor in the layoffs. "What's driving [the cuts] is the fact that we don't have visibility on Q4," said Marshall. "We saw in the last month orders trail off quite significantly. At this point, we're predicting flat revenue growth." "We're not losing business; customers are delaying their purchases. These moves now will help us weather the storm," Marshall added. The job cuts, to take place in June, will be in full-time, temporary and contractor positions alike, and will save the company 20 percent in operating expenses after a restructuring charge of $60-80 million in the June quarter, company officials said. dailynews.yahoo.com