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

To: Bob Howarth who wrote (5938)	3/31/1999 4:37:00 PM
From: Don Green	Read Replies (1) \| Respond to of 14451

Honeymoon is NOW over. Silicon Graphics, Inc. (NYSE:SGI - news) announced that, based on a preliminary analysis of its results to date for the quarter ending March 31, 1999, it expects to report revenue in the low to mid $600 million range. Based upon this revenue forecast, the Company now expects to report a net loss that is $0.20 to $0.25 larger than Wall Street expectations. ''This quarter's disappointing results reflect challenging transitions in both of our principal product lines,'' said Richard Belluzzo, chairman and chief executive officer. ''Our new 320 Visual Workstation product has received a great critical response, but delays in the initial production ramp and implementing a new operations model adversely affected our Q3 revenue. The product is now in full production, and we are confident that it will be successful. ''Our Origin server business also faced a transition, with the imminent introduction of our new R12000 microprocessor-based systems,'' added Belluzzo. ''Based upon initial feedback from customers, these new systems should be well received and will put us in a better competitive position. We expect the new systems to be available without supply constraints in the June quarter.'' These statements regarding estimated results are preliminary and based on partial information and management assumptions. The company expects to announce its actual results for the quarter on April 22, 1999. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties detailed from time to time in the company's SEC reports, including the report on Form 10-Q for the quarter ended December 31, 1998. Silicon Graphics, Inc. is a leading supplier of visual computing and high-performance systems. Silicon Graphics and its subsidiaries have offices throughout the world and headquarters in Mountain View, CA.