Silicon Graphics stock dropped 12 cents, or 8 percent, to $1.35 in midday trading Wednesday, a day after the company said its revenue would be lower and its losses deeper than earlier expected. However, because of a higher backlog, the high-end computer maker said it expects an increase in revenue for the current quarter, which ends in December.
Revenue for the first quarter of fiscal 2005, which ended Sept. 24, will be about $175 million instead of the previously projected range of $190 million to $210 million, SGI said. The net loss will be about $25 million instead of between $10 million and $20 million. SGI reports detailed financial results Oct. 19.