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

To: Bill Holtzman who wrote (5783)	2/27/1999 7:49:00 PM
From: Don Green	Read Replies (2) \| Respond to of 14451

> should there ever be plus earnings again.. Don't be so demanding, all I want is the prospect of earnings.. Don

To: Bill Holtzman who wrote (5783)	3/1/1999 12:58:00 PM
From: brushwud	Read Replies (2) \| Respond to of 14451

Don't expect shares outstanding to drop much even with the repurchase. The 10-K says the purpose of the repurchase is to mitigate the effect of the ESPP and ISO stock plans. And the 10-Q indicates 10 million shares have been omitted from shares outstanding because they are anti-dilutive. In other words, if and when the company gets back to making a reasonable amount of money, these shares will have to be accounted for in computing EPS. And some of the shares repurchased have already been reflected in their most recent total share count. So a calculation like 187 - 27 = 160 would be incorrect. I'd be surprised to see less than 180 million unless they lose money for another year. Another factor is that the money paid out to buy back shares no longer earns interest for the company, so it reduces income.