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

To: Kirk Vanden who wrote (5297)	11/8/1998 8:57:00 PM
From: john dodson	Respond to of 14451

From the 8/15/98 Olde SGI report. Kinda old, but interesting: Outlook & Recommendation: In summary, we reiterate our Neutral rating on shares on Silicon Graphics. We are encouraged by the company's long-term re-structuring plan aimed at re-focusing the company on emerging market segments and improving financial performance. We believe the company's willingness to pursue opportunities in the Windows NT market segment is an additional positive; yet, we are cautious going forward due to potential problems asso-ciated with supporting dual operating systems. We also note that over the last two years the company's ‘transition' perfor-mance has been less than desirable as 7 of the last 9 quarters resulted in negative EPS comparisons. We believe a portion of the negative results reflect the inability of past management to properly execute its internal corporate strategies. However, with the addition of a new CEO, who is re-focusing the company on its core strength, we believe some of these internal problems can be diverted and the company may be able to reassert itself as a strong market leader. Going forward, we will look for confirmation the company can successfully transition to a dual operating platform without com-promising its UNIX customer installed base. We will focus on the company's products directed toward both the UNIX and Win-dows NT platforms. In particular, we will look for the company to announce the availability of volume shipments of Windows NT based products and we will look for acceptance of those products in the marketplace. We anticipate continued strength from the server market but we remain cautious due to intense competition from well established competitors. Finally, we be-lieve soft sales from the O2 product lines will persist in the near-term. Consequently, we believe the company has a viable road map in place; yet, we need more concrete evidence the company can execute its internal corporate strategy and that the market place is ready to accept additional Windows NT based products. -John Dodson