Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (869)	10/6/1998 11:12:00 PM
From: porcupine --''''>	Respond to of 1722

S&P cuts Silicon Graphics and unit (Press release provided by Standard & Poor's) NEW YORK, Oct 6 - Standard & Poor's today lowered its ratings of Silicon Graphics Inc. and its wholly owned subsidiary Cray Research Inc. (see table below). The ratings were also removed from CreditWatch, where they were placed with negative implications on March 30, 1998. The downgrade reflects Silicon Graphics lack of profitability and weakened market position in the highly competitive workstation and high-end server markets. The outlook is negative. While the 1996 acquisition of struggling Cray Research Inc. gave Silicon Graphics access to Cray's technology and customer base, profitability measures have been negatively impacted by Cray's lower margins and declining revenue base. In addition, Silicon Graphics has been struggling with market share losses in the low-end workstation market to low-priced Intel-based PCs, and with an inability to expand penetration in the more profitable server market. Silicon Graphics reported fiscal 1998 revenues of $3.1 billion (down 16% from the prior year), and a net loss of $460 million (including $390 million of pre-tax restructuring charges). Despite recent operating losses and restructuring charges, Silicon Graphics has maintained a conservative balance sheet. A focus on improved working capital management and asset efficiency has enabled Silicon Graphics to preserve cash balances despite weak funds flow from operations. As of June 30, 1998 the company had more than $700 million in cash and investments. Silicon Graphics majority ownership position in MIPS Technologies Inc. provides additional potential financial flexibility. OUTLOOK: NEGATIVE Failure to restore profitability and revenue growth could lead to lower ratings in the near term, Standard & Poor's said. RATINGS LOWERED & REMOVED FROM CREDITWATCH To From Silicon Graphics Corporate credit rating BB- BB+ Senior unsecured rating BB- BB+ Bank loan rating BB- BB+ Cray Research Corporate credit rating BB- BB+ Subordinated debt B BB-

To: porcupine --''''> who wrote (869)	10/6/1998 11:22:00 PM
From: porcupine --''''>	Read Replies (1) \| Respond to of 1722

IBM to Integrate Internet with France's Minitel "France Telecom, IBM in low-cost Internet access plan" NEW YORK, Oct 6 (Reuters) - France Telecom and IBM said on Tuesday they had teamed up to develop software that will offer a low-cost means of connecting to the Internet with a new generation of phones instead of personal computers. In a statement released in Paris, the two companies said they had formed a partnership to spur development of new types of low-cost Internet acn a barrier to widespread Internet adoption. Initially, the partners said, they plan to develop the new network software system for use in France, building on the country's established Minitel network, an online and electronic commerce network developed in the early 1980s that was a predeccessor to the development of the commercial Internet. The system will provide Internet access to consumers and businesses via so-called screen phones, which combine voice and text communications, and other devices, in a bid to make France one of the leading markets for electronic commerce services. The effort will run over a centrally managed network that allows users simple and quick access, based on a system of easy-to-navigate software menus, from any device connected to the network, the statement said. In the future, these devices could be embedded into a variety of consumer equipment, such as cars, television sets and other products, the companies said. The system will be based on open Internet software standards to ensure that the system can work in markets worldwide, running over hardware devices from a range of manufacturers, the companies said. ((-- Eric Auchard, reporter, New York bureau 212-859-1840))