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

To: miklosh who wrote (5247)	10/21/1998 5:21:00 PM
From: dd	Read Replies (1) \| Respond to of 14451

MOUNTAIN VIEW, Calif., Oct. 21 -- Silicon Graphics, Inc. (NYSE:SGI) today announced results for the first quarter of its 1999 fiscal year. Revenue for the first quarter was $616 million, compared with $768 million in the same quarter a year ago. Operating expenses for the quarter were $335 million, down approximately $40 million from the previous quarter and same quarter a year ago. The Company reported a net loss, including the Company's gain on the initial public offering of its MIPS Technologies subsidiary, of $44 million, or $0.24 per share, compared with a net loss of $56 million, or $0.31 per share, in the same quarter a year ago. Excluding the MIPS gain, the Company's net loss would have been $77 million, or $0.41 per share. "Reporting a loss is never satisfying, but I am very encouraged with the progress demonstrated in this quarter's results," said Richard Belluzzo, chairman and chief executive officer. "One of our key strategic objectives is to impose discipline on our cost structure which has resulted in operating expenses coming down dramatically for the quarter. We've also sharpened our focus on our core businesses with the successful initial public offering of our MIPS subsidiary. And we continue to see strong performance in our Origin server program. This quarter's results validate that our efforts are on target." "While we still have a way to go before we achieve sustained profitability," added Belluzzo, "We are encouraged by the progress we are making in transitioning our business to growth markets. Our new NT workstation product is an important element of that transition, and that product has been rescheduled for introduction in the first half of January. We remain encouraged by the response the product is receiving from customers, industry analysts and software developers." The Company's cash position continued to increase during the first quarter, as a result of the MIPS offering, increased collections of accounts receivable and lower inventory purchases. Cash, cash equivalents and marketable investments were $757 million at September 30, 1998, as compared to $737 million at June 30, 1998. The Company's consolidated backlog at September 30, 1998 was $317 million. All earnings per share amounts represent diluted earnings per share as defined in Statement of Financial Accounting Standards No. 128. dd