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

To: Esvida who wrote (3333)	10/30/1997 2:28:00 PM
From: Esvida	Respond to of 14451

SGI cost structure: I just took a quick look at Compaq and Dell just to see the sales per employee figures. For Compaq, the trend is up and as of 1996 fiscal year, it was $1 million per employee. Dell does not have a chart on this, but from the sales and the number of employees in fiscal 97, it comes out to about $700K per employee. After this layoff announcement, SGI still has about 11000 employees and it is shooting for a $900000 quarter. Let's say generously that SGI will have $4.5 billion net sales a year out. That comes out to $409K per employee. The SGI people better pray hard that their margin on NT will be as good as on Unix or all of that not-too-sizable cash will disappear in no time with future severance payouts. -Al