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Tech Industry

SGI misses, Infoseek beats mark

Silicon Graphics, Gateway, and Adaptec fall short of expectations, while Infoseek and Pixar exceed the Street.

    Silicon Graphics, Gateway, and Adaptec fell short of Wall Street's expectations for their quarterly earnings, while Infoseek and Pixar beat the Street's estimates.

    Infoseek posted a second-quarter net loss of $1.3 million, or 4 cents per share, narrower than the net loss of $12.5 million, or 47 cents a share, reported for the like quarter a year ago. According to First Call, analysts had expected Infoseek to lose 7 cents a share. The company's quarterly revenues more than doubled during the quarter to $17.1 million, up from $7.8 million a year ago.

    The Internet directory said it has decreased its reliance on traffic from Netscape's Web site by forging other alliances. "One of our goals is to not be dependent on any single source of traffic," Infoseek chief executive Harry Motro said in a statement.

    Adaptec, for its part, posted first-quarter net income of $11 million, or 10 cents a share, excluding charges related to the acquisitions of Ridge Technologies and some Analog Devices technologies, in addition to the termination of its merger with Symbios. (Last month the company called off plans to merge with Symbios, which LSI Logic since has agreed to buy for $760 million.

    A year ago Adaptec reported net income of $59.7 million, or 51 cents a share. Including the charges, the bandwidth management company recorded a loss of $77 million or 68 cents a share. Wall Street had expected the company to post a profit of 14 cents a share, according to First Call. Adaptec's quarterly revenue fell 33 percent, to $181 million, from $271 million posted for the like period a year ago.

    The company said it would take steps to improve performance during the second half of its fiscal year. "Our results were, in part, reflective of significant changes in market dynamics affecting the entire PC industry," Adaptec CEO Grant Saviers said in a statement. "In light of this situation, we intend to reduce inventory levels in the distribution channel during the September quarter. This will have a negative impact on revenue and operating results in our second fiscal quarter."

    In other earnings news:

    • Silicon Graphics reported a fourth-quarter net loss of $220 million, or $1.17 a share, compared with a profit of $102 million, or 54 cents a share, posted for the like quarter a year ago. Quarterly revenue fell to $774 million from $1.2 billion a year ago.

    Excluding charges, the company's fourth-quarter loss would have been $57 million, or 31 cents a share. Wall Street had predicted that the company would lose only 25 cents a share, according to First Call.

    But the restructuring is proving slower, and more expensive, than expected because of problems at Silicon Graphics' supercomputing subsidiary, Cray Research. Most of the one-time charges in the June quarter related to Cray, Chief Financial Officer Steve Gomo said. "We're finding that we had a little bit more challenge than we anticipated, particularly in the Cray area."

    • Gateway posted second-quarter net income of $60.7 million, or 38 cents a share, compared with net income of $56.4 million, or 36 cents a share, reported for the like quarter a year ago. Wall Street predicted that the company would post profits of 44 cents a share, according to First Call. Its quarterly revenue rose to $1.62 billion from $1.39 billion a year ago.

    • LSI Logic reported second-quarter net income of $32 million, or 23 cents a share, compared with profits of $45.8 million, or 32 cents a share, reported for the like quarter a year ago. The profits were in line with Wall Street's expectations, according to First Call. Quarterly revenue fell slightly, to $330 million from $332 million a year ago.

    "Based upon current visibility, our outlook for the third quarter is about flat, and we expect the fourth quarter to be stronger," LSI Logic chief executive Wilfred Corrigan said in a statement.

    • Pixar said it posted second-quarter profits of $2.1 million or 4 cents a share, compared with profits of $8.9 million, or 19 cents a share, posted for the like quarter a year ago. Quarterly revenue fell to $3.8 million from $14.4 million. First Call's consensus of analysts' estimates had pegged a break-even quarter for Pixar.