Feeds

SGI “disappointed” with Q3

Loss narrows, but revenue falls too

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

SGI -- the computer company formerly known as Silicon Graphics -- was yesterday forced to admit its recovery programme was not going as smoothly as planned when it posted "disappointing" Q3 results, dispite a marked reduction in the amount of money it lost. The company posted a loss of $40 million for the quarter, ended . That's nearly a quarter of the $153 million it lost in the same period last year. However, revenue for the third quarter was $619 million, compared with $708 million in the same quarter a year ago. "These shortfalls mask the progress that we are continuing to make in other areas of our business, including strong new products, improved quality and operational efficiency, and lower expenses. We are focusing our efforts on generating demand in growing markets," said SGI's chairman and CEO, Richard Belluzzo. And, responding to analysts' predictions that SGI would make a profit in the current quarter, senior VP for corporate operations Bill Kelly told US newswires: "That's not going to happen." "Third quarter is not what we wanted it to be," he added. Still, the company continues to own 85 per cent of Risc processor manufacturer MIPS, and plans to divest itself of a good proportion of that stake. It had already planned to take its shareholding down to 65 per cent, but the latest figures may persude Belluzzo to sell more. It's a strategy working quite well over at Apple -- its recent profitable quarters have been boosted by ditching chunks of its stake in AMD Holdings. Apple and SGI, as companies long associated with creative computing, have much in common. Both ran into real trouble by failing to keep up with wider industry developments and, in many ways, relying on their userbase to stick with them and not opt to migrate to cheaper platforms. Both are now targetting more entry-level customers with designer hardware, and both are looking to the open source world to improve their software support. In SGI's case, that means adopting Linux, initially alongside its Windows NT-based offerings, launched earlier this year, and perhaps replacing NT as the company's core operating system. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.