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

To: dav who wrote (5976)	3/31/1999 9:14:00 PM
From: Ram Seetharaman	Read Replies (1) \| Respond to of 14451

Time to sell SGI short- will be back as long when it hits $ 10. Wednesday March 31, 8:02 pm Eastern Time Silicon Graphics sees larger-than-forecast loss (Recasts, changes dateline, prev. Mountain View) By Andrea Orr PALO ALTO, Calif., March 31 (Reuters) - Computer workstation maker Silicon Graphics Inc.(NYSE:SGI - news) said Wednesday it would report a larger third-quarter loss than Wall Street had forecast, citing production delays in both of its key product areas. The company, which has been attempting to turn around its troubled business for over a year, said the latest problems indicate it still faced some ''execution challenges.'' ''There's no particular excuse,'' said Bill Kelly, senior vice president of corporate operations. ''This is not acceptable.'' Kelly said Silicon Graphics would within the next few weeks announce a ''clarification of responsibilities,'' to address the problems. He declined to say whether any changes in senior management were likely. Silicon Graphics said its net loss in the third quarter ending March 31 will be 20 to 25 cents a share larger than Wall Street's current expectations. It did not give a specific forecast, although the consensus estimate among analysts who follow the company had been for a loss of 7 cents per share, prior to Wednesday's warning. The company also said it expected to report third-quarter revenues in the low to mid-$600 million range. In last year's third quarter, Silicon Graphics lost $153.6 million, or 81 cents per share, on revenues of $552.4 million. Since then, it has worked aggressively to rebuild its business around a workstation that delivers state-of-the-art graphics and design capabilities at much-lower prices than its older models. Silicon Graphics unveiled the machines in January at a glitzy media event at which it forecast the equipment would help it reclaim much of the business lost to competitors over the years. On Wednesday the company revealed that production glitches had arisen during the quarter that frustrated that plan. Production was disrupted so much that it was unable to make enough demonstration units to get into the hands of key distributors and potential buyers. For this reason, it said it remained to be seen how strong demand will be for the new workstations. ''I think we've got a great product,'' said Kelly, who noted that the response among those who were able to see one of the workstations was strong. In addition to the workstation problems, Silicon Graphics faced similar delays in its Origin server business, as it shifted to a faster processor. Kelly said it was mostly ''a coincidence'' that the two divisions faced production problems in the same quarter.

To: dav who wrote (5976)	3/31/1999 9:26:00 PM
From: sea_biscuit	Respond to of 14451

Yes. "Ever". And I mean it! Looks like I'm paying the price for deviating from my discipline of buying stocks that have increased their dividends for 10 or more consecutive years... I bought SGI at 20 because of its low price/sales ratio and now, nearly three years later, in the greatest bull-market in history, I am (or will be, tomorrow!) at "lucky" 13. If I am lucky, that is. Maybe I'll make that trip to single-digits one more time! Maybe it will happen by next week! Who knows?! Gee! I wish today was a Friday. I am really sick and tired. Glad to get it off the chest anyway... Thanks!