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

To: Doug who wrote (4747)	4/21/1998 5:22:00 PM
From: dd	Read Replies (1) \| Respond to of 14451

Doug- Go back and read post #4712, also go through some of the posts in that area. That will explain it better to you than I could. I know only what I read as I am not connected with the company in any way except as a stockholder. There will be spin-offs or selling of parts of the business, downsizing, concentrating on their strengths, etc. As well as I remember the time frame for profitable results is estimated around the last two quarters of 1999 fiscal year which would be Jan.-June,'99. My personal opinion is that this quarter just ended will be our worst quarter, next quarter may not be too good either, but after that I look for some improvement. I intend to hang in there for the present time-again my personal opinion. dd

To: Doug who wrote (4747)	4/22/1998 9:16:00 AM
From: dd	Read Replies (1) \| Respond to of 14451

April 21, 1998 Silicon Graphics Reports a Loss In Line With Revised Estimates An INTERACTIVE JOURNAL News Roundup Silicon Graphics Inc. reported a net loss for its latest period Tuesday, citing previously announced revenue shortfalls. For the fiscal third quarter ended March 31, the Mountain View, Calif., maker of high-end computer workstations reported a net loss of $152.6 million, or 81 cents a share, compared with net income of $10.5 million, or 6 cents a share, in the year-earlier period. The latest period included a one-time restructuring charge and other items related to discontinued products and technologies that added up to $114 million, or approximately 45 cents a share. Excluding these charges, the company reported a loss of 36 cents a share, in line with analysts' estimates as surveyed by First Call. Revenue, meanwhile, plunged 22% to $708.3 million. Prior to a warning in late March that the company would see a significant revenue shortfall, analysts had expected SGI to break even for the period. Tuesday's results mark the third consecutive quarterly loss for SGI, which is best-known for machines that make high-quality graphics for movies. While many moviegoers are familiar with the dazzling work created by special-effects technicians using SGI's machines, the company has failed to meet profit and product-shipment forecasts and gained a reputation for free spending by top management. The company's troubles eventually led to a board-ordered revamping of the company early this year. Richard Belluzzo, who in January was named chairman and chief executive officer, in March called the expected results "disappointing" and said the poor sales "reflect the continuation of several trends that have affected Silicon Graphics over the past several quarters, including declines in the Unix workstation and supercomputer businesses and marketing-execution challenges in the server business." SGI said last week that it will try to broaden the appeal of its technology by moving toward the "Wintel" side of computing, using microprocessors from Intel Corp. and operating systems from Microsoft Corp. SGI and Intel entered into a cross-licensing pact that will not only make SGI an Intel customer, but also will give Intel access to SGI's graphics technology. Mr. Belluzzo also confirmed plans last week to spin off SGI's MIPS Technologies Inc. unit, which makes microprocessor chips, as an independent, publicly owned business. In the first phase, MIPS is expected to make an initial public offering of as much as 20% of its shares outstanding, with SGI holding the remainder. Analysts are mixed on SGI's chances to revamp itself. Some wonder if there is room in the Wintel world for the high-end graphics features that Mr. Belluzzo hopes will set SGI's machines apart from the pack of PC cloners. Most people, though, agree on at least one thing: If anyone can do the job, it's Mr. Belluzzo. Mr. Belluzzo's hiring was regarded as a spectacular coup for SGI. A protege of Richard Hackborn, the fabled Hewlett-Packard Co. executive who built that firm's huge printing business, Mr. Belluzzo was No. 2 at H-P and in line to succeed Lewis Platt as CEO in a few years. Shares of SGI rose 18.75 cents to $13.75 in New York Stock Exchange trading Tuesday. The earnings were released after the close of trading. dd