Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Walcalla who wrote (113777)	3/31/1999 9:50:00 PM
From: TechMkt	Respond to of 176387

Part of the problem for Silicon Graphics (SGI) is that DELL is snatching up their market share. Poor execution doesn't help. I don't think SGI's problems are indicative of industry wide problems. Fez ________________________________ Silicon Graphics Warns of Wider-Than-Expected Loss Mountain View, California, March 31 (Bloomberg) -- Silicon Graphics Inc. said it will report a larger-than-expected loss in the fiscal third quarter, because the struggling computer maker was hurt by delays in producing its new workstations. SGI said it expects sales of about $600 million and a loss of 27 cents to 32 cents a share in the quarter ending today. SGI was expected to lose 7 cents, the average of estimates gathered by First Call Corp., compared with a loss from operations of $68 million, or 36 cents a share, in the year-ago quarter. SGI in January unveiled new workstations based on Intel Corp. and Microsoft Corp. technology. Chief Executive Rick Belluzzo said those machines would help SGI reclaim sales lost to rivals making less expensive computers for graphics and design. Delays in producing those machines hurt results, SGI said. ''They are operating in a difficult environment,'' said Brian Eisenbarth, an analyst at Collins & Co. in Larkspur, California, who rates SGI shares ''hold.'' ''With (computer) prices going down, it's all about volume. If you can't pump out the units, you're in trouble.'' Plan for Profit The new machines are part of Belluzzo's plan to return SGI to profitability. The company has lost sales to Dell Computer Corp., Hewlett-Packard Co. and others. Belluzzo said demand for the new machines is good, and that SGI has resolved all the production problems. SGI joined rivals in making machines based on Intel and Microsoft components because such machines are usually cheaper to manufacture. ''The product is now in full production, and we're confident that it will be successful,'' Belluzzo said in a statement. Investors have been watching Belluzzo's moves since January 1998, when he walked away as the No. 2 executive at computer giant Hewlett-Packard to run the struggling SGI. Belluzzo impressed investors in the fiscal second quarter ended Dec. 31, when SGI reported a smaller-than-expected loss from operations of $25 million, or 14 cents a share. SGI was expected to lose 19 cents a share. A delay in rolling out another, more powerful computer also hurt results in the third quarter, SGI said today. Its Origin server line was less competitive with rivals during the quarter because new Origin machines aren't shipping until next quarter. SGI said it will announce third-quarter results on April 22.