SGI predicts deeper than expected Q4 loss
Revenues down on supply problems, lower sales
Posted in Business, 12th July 2000 11:11 GMT
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SGI's Q4 loss will be bigger than planned thanks to tumbling revenues, the company warned Wall Street yesterday.
SGI predicted the quarter's revenue will fall within a $525-535 million range. That's well down on the $829 million it recorded for the same period last year, and down on the previous quarter's $563.7 million, itself down nine per cent on Q3 1999's $619.2 million.
The troubled company laid the blame for the shortfall on supply problems, which hit desktop production; moving over to a number of new machines; and fewer sales of supercomputers. Last quarter, SGI finally got rid of its Cray supercomputer business, offloading it on Tera for around $100 million - rather less than the $740 million it paid for Cray.
Last quarter, SGI blamed its revenue shortfall and loss on delays in the shipment of MIPS' R12000 CPU.
First Call puts Wall Street's expectations of SGI's Q4 2000 loss at eight cents a share. Last quarter saw a loss of ten cents a share, below expectations of seven cents a share. ®
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