SGI puts brave face on missed Q1 target
There's good products coming, boys...
Silicon Graphics Inc fell short of expectations in its first quarter, but insisted upcoming product launches would set it back on track.
Sales at the Mountain View, California-based company were $241.7m in the quarter ending September 27, down 36.3% on the year. Operating losses were $40.4m, down from losses of $46.6m last year. Net losses were $41.1m, compared to last year's $69.3m loss. This resulted in a loss per share of $0.21.
The figures were well short of expectations. Analysts had expected the workstation and server company to turn in a loss of $0.13 on sales of $260m.
SGI delivered a sober forecast for the coming quarter, predicting revenue of $240m to $260m, and an operating loss. Analysts had been expecting revenues of $290m.
Chairman and CEO Bob Bishop put on a brave face despite the results, saying that the company's upcoming product launches will help it fight back against rivals' encroachment into its core markets. This includes the Origin 3000 server due to launch in November, and the Itanium and Linux-based supercomputer the company expects to begin shipping in the third quarter. In the meantime, added Bishop, SGI is moving more resources into its sales operation.