Feeds

SGI pins hopes on Bricks

Backlog softens revenue slump

  • alert
  • submit to reddit

Internet Security Threat Report 2014

On the eve of its launch of third generation products, has Silicon Graphics detailed its final quarter results for the fiscal year. As expected, revenue slumped by 36 per cent against the preceding quarter, down to $434m, giving a net loss of $830m for the entire year.

The company said the poor quarter was down to "weakness across the range", as orders dried up for the systems which have been superseded by its new Onyx3 and Origin cubes, launched at SIGGRAPH this week.

SGI says it's already booked $100m in new orders for the new range, and expects to ship two thirds of this in the next quarter. Although diminished, SGI's cash pile remains substantial at $384m. SGI CEO Bob Bishop boasted that advanced orders for the new range already included DaimlerChrysler and Renault among the manufacturers, and Morgan Stanley for risk analysis.

Bishop said he expected lower revenues over the next year, down to $2.1bn, but was reckoning on margins creeping back up to the 40 per cent days of yore. SGI says "component shortages" - in other words, the delayed MIPS R12000 processor - are behind it. These days the company earns almost twice as much from services than it does from workstations.

In addition to the cubes, SGI has acquired Intergraph's Zx10 NT workstations and servers, which it will pitch at the print business. Bloodied by its legal tussles with Intel, Intergraph has promised to take $100m of SGI kit and services over three years, in exchange for SGI acquiring exclusive rights to reselling the Zx10 line. ®

Related stories

Sony aims Emotion Engine tech at SGI's Hollywood fief
"SGI predicts deeper than expected Q4 loss
SGI to shower shareholders with MIPS stock

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.