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

To: Don Green who wrote (11013)	5/22/2003 10:59:48 AM
From: Don Green	Read Replies (1) \| Respond to of 14451

SGI slashes jobs Silicon Graphics Inc. says it's eliminating 400 jobs -- 10 percent of its entire work force -- to cut costs. The Mountain View-based maker of high-end graphic workstations and software says the goal is to align the company to better match market conditions. "Despite encouraging recent developments, including the growth of SGI's defense sector business and the early success of the Altix line of superclusters and servers, our revenue performance has been lower than expected, reflecting a difficult market for large industrial systems sales," says Bob Bishop, chairman and CEO of SGI. "Our intent is to bring expenses in line with revenues. We are in the process of taking other specific actions to increase revenue and lower costs." The effect of the reduction will be to reduce quarterly expenses by approximately $10 million, beginning with the quarter ending Sept. 26, it says. SGI plans to record a charge of approximately $15 million to $20 million in the quarter ending June 27 relating to the restructuring. The charge will principally consist of severance costs paid over the next several months. SGI lost more than $34.9 million (17 cents per diluted share) on revenues of $217.1 million for its fiscal third quarter ended March 28. That compared to a profit of $10.3 million (5 cents per diluted share) on revenues of $313.6 million in the same quarter a year earlier. "[I]n this period of global uncertainty, heightened by the war in Iraq, customers have continued to delay larger project commitments," Mr. Bishop said in April when the figures were announced. sanjose.bizjournals.com