Feeds

Silicon Graphics goes titsup (again)

Instant buy up by Rackable

Top three mobile application threats

Silicon Graphics Inc. (SGI), the perma-struggling workstation-turned-server-maker, filed for bankruptcy protection today, and was immediately bought by Rackable Systems for $25m cash.

Rackable has signed to take on of SGI liabilities. The deal is expected to complete in 60 days.

The combined company will target the hyper-competitive market for x86 boxes for cluster and high performance computing, internet and cloud services.

"This combination gives us the potential for significant operational synergies, a strong balance sheet, and positions the combined company for long-term growth and profitability," said Rackable CEO Mark Barrenechea.

SGI recently laid off more than 15 per cent of its workforce, leaving it with about 1,155 staff. The move wasn't sufficient to save it as a standalone firm however.

Today's Chapter 11 filing is SGI's second in three years. It last went titsup in May 2006 with debts of $664m. The subsequent reorganisation didn't help matters much; SGI's most recent quarterly results revealed an operating loss of $38.2m and rising.

It's expected that SGI will continue business operations while the deal goes through. Its international operations would be part of the sale, but are not part of the US bankruptcy. ®

High performance access to file storage

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.